KeyBanc Reiterates Sector Weight Rating on Super Micro Computer

KeyBanc analyst Brandon Nispel reiterated a Sector Weight rating on Super Micro Computer (NASDAQ: SMCI).

“We remain SW SMCI and have mixed est changes.

Revenue was below expectations/guidance on timing while gross margins were well above on customer mix, lower tariffs, expedite costs, and inventory write-down costs with mix playing the primary factor.

With F4Q guidance calling for ~$11.75B in revenue, and a modest q/q decline in gross margins (though still better than us/ consensus), we expect the stock to react positively.

We like SMCI growth but continue to have concerns on gross margins, and are seeking more consistency in beats on revenue/gross margins to get more constructive.”

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