Super Micro Computer (SMCI) Introduces New Client “Customer G,” Accounting for 31% of Fiscal Q2’25 Revenue

This is not investment advice. The author has no position in any of the stocks mentioned.

Recent Developments for Super Micro Computer (SMCI)

Super Micro Computer, known for its cutting-edge servers and liquid-cooled AI racks, has effectively navigated a significant obstacle that threatened its listing on the Nasdaq. This recent turn of events has led to a cautious yet optimistic outlook from Wall Street analysts regarding the company’s future.

Filing Success and Avoiding Delisting

Earlier this week, Super Micro Computer submitted its annual report for FY 2024 just in time to avert a delisting from the Nasdaq. This was particularly crucial following a troubling report from Hindenburg Research in August 2024, which accused the company of serious accounting irregularities. In response, SMCI had suspended its financial filings to conduct a thorough internal audit.

Goldman Sachs’ Positive Outlook

Goldman Sachs has revised its stance on Super Micro Computer, increasing the stock price target from $36 to $40. While retaining a neutral rating, analyst Michael Ng noted the successful filing of the company’s financial statements, including its Form 10-K and 10-Q, without needing to restate previous filings.

Importantly, Super Micro Computer has received a formal letter from Nasdaq, confirming its compliance with the listing requirements. Ng acknowledged weaknesses uncovered in the company’s internal controls but also emphasized ongoing efforts to improve these systems.

New Customer Insights Revealed

One noteworthy highlight from Goldman’s analysis is the emergence of a significant new customer, identified as “Customer G, ”accounting for 31% of revenue in fiscal Q2 2025:

“SMCI’s customer concentration disclosures reveal a new Customer G, which made up 31% of revenue in F2Q25.”

Barclays’ Perspective on SMCI

In a recent move, Barclays analyst George Wang has reinstated coverage of Super Micro Computer, assigning an ‘Equal Weight’ rating with a price target set at $59. Wang commended SMCI for its dominant position in AI server technology and direct liquid cooling (DLC), expecting the company to be among the early shippers of B200 HGX servers in the upcoming quarters.

Nonetheless, Wang also expressed caution, indicating that SMCI’s competitive advantages may be diminishing. He pointed out that the firm’s troubled history could restrict the price-to-earnings (P/E) ratios that investors may consider justifiable.

Despite the recent improvements and renewed interest from clients, Barclays remains on the sidelines due to potential risks related to financial controls and concerns about future capital requirements for Blackwell purchases.

Overall, while Super Micro Computer’s situation is stabilizing, analysts advise a careful approach, considering both its promising prospects and the lingering uncertainties.

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