Super Micro (SMCI) is rallying after releasing preliminary Q1 revenue results. @NPetallides notes that BofA is more cautious about margin pressures and competitive dynamics in the AI server market. The firm has an "Underperform" rating on $SMCI but raised its price target to $38 from $33. Rosenblatt raised its price target on the stock to $57 from $51 while maintaining a "Buy" rating. For more market news, tune in at:

Abstract of SMIC and LITE Earnings Notes SMCI — Raised TP to $54. Strong F4Q26 GM beat (17.6%) + higher FY27 guide ($65-72bn). Margin pop mostly transitory (mix/delays), but structural 10%+ GM target + $60bn backlog + no more dilution = improved outlook. Still key SpaceX share + broader client base (9 >bn clients). LITE — TP $961. Results inline, F1Q27 guide modest beat (~24% QoQ growth). EML sold out through 2028 (hyperscalers + NVDA). 1.6T + CPO/NPO/OCS driving multi-year growth + margin expansion. Supply tightness remains a tailwind. As said, Key is Mkt doesn’t have scale-up CPO expectations. #SMCI# #LITE#

$SMCI CFO Mark Long on AI buildouts: “A single deployment today can exceed our total quarterly revenue from just one year ago.” One data center customer accounted for 44% of Q1 revenue, up from 28% in FY26. SMCI's quarterly revenue a year ago was $5.0B.

In another world, $SMCI would look more like $DELL? If they didn't try smuggling $NVDA GPUs using hairdryers... Regardless, SMCI guiding $65-72B FY 2027 revenue off a ~$25B MC is pretty crazy the more I look at it.

$SMCI 2027 guidance was actually unholy: $65-$72 billion FY 2027 revenue guidance... vs. ~$52.4B expected, a casual +$16.1B above consensus. SMCI logged a massive $60B+ in news order from this earnings. That timeline is also interesting when they announced a plan to co-build $SPCX + xAI DCs "within a year" back in June.. But if SMCI sustain 10-15% gross margins off that ~$70B revenue guidance... I think there's a lot of room for rerating given MC is ~$20B (NFA, I have short term positions in SMCI now from this ER). Most important thing is learning about 2027 margins from call today.