Super Micro Computer tumbles even as Wall Street praises Q4 results, guidance
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Super Micro Computer (NASDAQ:SMCI) tumbled more than 17% in early trading on Wednesday even as Wall Street praised the company's fourth-quarter results and guidance. 
Wedbush Securities analyst Matt Bryson, who has an underperform rating on Super Micro (SMCI), said the company is obviously "reaping the rewards" of the boom in artificial intelligence, but expectations are high and concerns about the guidance may explain the drop. 
"We are not particularly concerned by the presumed pause in SMCI's business implied by the company's [guide]," Bryson wrote in an investor note. "Rather we see this outlook as very much fitting with our conversations suggesting GPU tightness as generally governing near-term AI server shipments vs. any pause in demand, consistent with management's suggestion that FY 2024 growth expectations are being dictated by component availability."
Bryson boosted his price target to $250 from $65, but said the underperform rating is related to the high valuation, uncertainty around the longevity of the "steep increase" in emerging AI cloud demand and the likelihood that margins for AI servers eventually starts to weaken.
In addition, Bryson said the quarterly results from Super Micro (SMCI) still support the "strong uptick" for generative AI capabilities, with a read through seen as "mixed to positive" for Nvidia (NVDA), given that Nvidia is still largely the dominant player in GPUs for large language models.
Northland Capital Markets analyst Nehal Chokshi, who has an outperform rating and $395 price target on Super Micro (SMCI), said he sees a path to the company earning at least $15 per share in fiscal 2024. 
Additionally, the company also confirmed Chokshi's expectation that AI-related revenue rose three times sequentially to roughly $1.1B, "which we now triangulate to mean SMCIâs AI market share increased from ~7% in the Mar Q to an astonishing 17% in the [June quarter]."
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