By Elsa Ohlen

Super Micro Computer Inc. looks to extend this week's losses Friday even after the artificial-intelligence server maker filed its delayed financial accounts in time to avoid delisting from the Nasdaq.

Shares, trading under the ticker SMCI, dropped 1.5% to $42.31 in premarket trading after a 16% fall on Thursday. That came alongside a Nasdaq drop of 2.8% and a S&P 500 that fell 1.6% after fresh tariff threats from President Donald Trump.

Goldman Sachs analysts led by Michael Ng pointed to both upside and downside risks in a research note.

Stronger-than-expected demand for AI servers could boost Super Micro's balance sheet, Ng wrote. The company is a specialized supplier of high-performance server and storage systems and has long partnered with key chip makers such as Nvidia, AMD and Intel, which helped it become a leading AI infrastructure company and an "AI winner," Ng said in the Wednesday note.

"SMCI is very well positioned to serve demand from AI [communications service providers] over the next few years, but serving enterprise AI infrastructure demand in the years after likely will be more competitive, particularly given more enterprise-focused IT hardware suppliers such as Dell and [ Cisco Systems]."

Super Micro may also face margin pressures as it focuses on share gains. Customer concentration risks and prior financial reporting issues are also key risks, Ng noted as he reiterated a Hold rating on the stock with a $40 price target.

SMCI shares had fallen 23% over the last five trading days by Thursday's close, however are still up 50% since the start of the month.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

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February 28, 2025 07:06 ET (12:06 GMT)

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