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Filed: 2026-10-20 AccNo: 0001375365-26-000025 Size: 177 KB Item 2.02: Results of Operations and Financial Condition Item 9.01: Financial Statements and Exhibits
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Wall Street analysts recommend selling two popular AI stocks due to overvaluation concerns. Jefferies' Brent Thill targets Palantir at $80 per share, implying 60% downside from $199, citing excessive valuation despite strong fundamentals. Susquehanna's Mehdi Hosseini targets Super Micro Computer at $15 per share, implying 57% downside from $35, citing declining margins and corporate governance issues.
Astera Labs dropped 16.5% in an AI sector sell-off despite having no debt and $1.25 billion in cash. The author recommends buying the dip, citing the company's recent launches of PCIe 7 Aries chips and Orion rack-scale design, along with upcoming Q3 earnings on November 3rd. However, the stock trades at high multiples and depends on a few large customers, making it volatile.
Super Micro Computer exceeded its Q1 fiscal 2027 revenue forecast by ~$4 billion to $18.5-19.5 billion, driven by strong AI platform demand. This suggests robust demand for Nvidia's chips and supports confidence in Nvidia's $108 billion revenue guidance. At ~$220, Nvidia trades at 14x forward earnings, which may undervalue its continued growth trajectory.
Super Micro Computer (SMCI) stock surged 9.69% after announcing preliminary Q1 FY2027 revenue of $18.5-$19.5 billion, significantly exceeding prior guidance of $14.5-$15.5 billion and Wall Street expectations of ~$15 billion. The outperformance was driven by strong AI data center demand, with gross margins also improving to 12-12.5% from prior guidance of 10.4-10.8%. The results suggest robust AI infrastructure spending and benefited fellow server makers Dell and Hewlett Packard Enterprise.