Mizuho Cuts SMCI Price Target to $25 as Legal Risks Cloud AI-Server Growth

Overview

• Brokerage Mizuho lowered Super Micro Computer’s price target to $25 and kept a Neutral rating, citing legal, trade, and competitive risks facing the AI‑server maker.
• Mizuho warned that customer orders could shift to Dell, noting Dell’s far larger AI services team and pipeline, and it raised Dell’s target to $215.
• Co‑founder Yih‑Shyan “Wally” Liaw entered a not guilty plea to federal charges alleging illegal diversion of Nvidia‑equipped servers to China, and a shareholder class action was filed in California.
• Despite the legal overhang, SMCI reported quarterly revenue of $12.68 billion, up about 123% year over year, and an EPS beat, though gross margin near 8% remains a key weakness.
• Wall Street’s stance is cautious with a Hold consensus and an average target around $36.50, as analysts watch Nvidia GPU allocations, customer diligence, and potential order shifts to larger rivals.