Super Micro Computer (NASDAQ:SMCI) Shares Down 3.9% – Should You Sell?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) dropped 3.9% during trading on Thursday . The stock traded as low as $31.16 and last traded at $32.28. Approximately 28,325,605 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 33,473,816 shares. The stock had previously closed at $33.60.

Super Micro Computer News Summary

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: Company and partners expanding AI product stack and go‑to‑market: Supermicro launched a high‑density AMD EPYC 4005 MicroBlade and announced a full enterprise AI data platform with VAST Data and NVIDIA—both strengthen SMCI’s product breadth for cloud/AI customers and support long‑term revenue growth. Supermicro Introduces Industry’s Highest Density AMD EPYC™ 4005 Series MicroBlade
• Positive Sentiment: Top‑line momentum and raised AI revenue outlook: multiple reports note record AI‑server demand and a company lift to a ~US$40B AI‑focused revenue outlook — a major growth signal that underpins upside if SMCI can convert share gains into durable profits. How Investors May Respond To Super Micro Computer (SMCI) Lifting AI-Focused Revenue Outlook To US$40 Billion
• Positive Sentiment: Valuation/long‑term bull cases argue the selloff is overdone: bullish writeups highlight unique modular design, faster NVIDIA Blackwell launches, DCBBS expansion and an EV/Sales discount versus peers, arguing upside to ~$37–$62 if margins recover. Super Micro: Margin Compression Has Caused The Market To Misprice The Stock
• Neutral Sentiment: Operational pilot shows new use cases (grid demand response): a joint demo proved GPU workloads can provide grid flexibility, which is strategically positive but unlikely to move near‑term earnings materially. CPower, Bentaus and Supermicro Successfully Flex AI Compute Load for Demand Response
• Negative Sentiment: Margin compression and profit‑taking are the main near‑term headwinds: analysts and market commentary point to much lower gross margins (mix, expedite costs, customer concentration) even as revenue surges, prompting investors to cut positions on a “growth without margin” risk. Super Micro Computer falls 6% as AI-hardware sentiment weakens and margin concerns linger
• Negative Sentiment: Analyst pushback and a downgrade/stress‑test thesis increased selling pressure: recent bearish research highlights execution risk and a potential “billion‑dollar stress test,” which amplifies volatility in a sector already sensitive to guidance and margins. Super Micro’s Billion-Dollar Stress Test (Rating Downgrade)
• Negative Sentiment: Mixed insider and institutional flows: some data show recent insider sales and large institutional trims at quarter‑end, which can fuel short‑term downside even amid longer‑term share accumulation by other funds. Super Micro Computer falls 6% as AI-hardware sentiment weakens and margin concerns linger

Analysts Set New Price Targets

SMCI has been the topic of several research reports. JPMorgan Chase & Co. reduced their target price on Super Micro Computer from $43.00 to $40.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Mizuho set a $33.00 price objective on Super Micro Computer in a research note on Wednesday, February 4th. Zacks Research upgraded Super Micro Computer from a “strong sell” rating to a “hold” rating in a research report on Monday, December 8th. KGI Securities raised shares of Super Micro Computer from a “neutral” rating to an “outperform” rating and set a $60.00 target price for the company in a report on Wednesday, November 5th. Finally, Barclays set a $38.00 price target on shares of Super Micro Computer and gave the company an “equal weight” rating in a research note on Wednesday, February 4th. Five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Super Micro Computer presently has a consensus rating of “Hold” and a consensus target price of $43.43.

Super Micro Computer Stock Performance

The company has a debt-to-equity ratio of 0.67, a current ratio of 1.70 and a quick ratio of 1.01. The business has a 50-day moving average of $30.89 and a 200-day moving average of $39.01. The company has a market capitalization of $19.34 billion, a P/E ratio of 24.09, a P/E/G ratio of 0.61 and a beta of 1.53.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings data on Tuesday, February 3rd. The company reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.49 by $0.20. The business had revenue of $12.68 billion for the quarter, compared to analysts’ expectations of $10.34 billion. Super Micro Computer had a net margin of 3.11% and a return on equity of 13.22%. The business’s revenue was up 123.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.59 earnings per share. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS. On average, sell-side analysts anticipate that Super Micro Computer, Inc. will post 1.86 EPS for the current year.

Institutional Investors Weigh In On Super Micro Computer

Several hedge funds and other institutional investors have recently modified their holdings of SMCI. Anfield Capital Management LLC bought a new position in Super Micro Computer in the 2nd quarter valued at $25,000. Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Super Micro Computer during the second quarter valued at $25,000. Armstrong Advisory Group Inc. purchased a new stake in shares of Super Micro Computer during the third quarter valued at $29,000. Hazlett Burt & Watson Inc. grew its holdings in shares of Super Micro Computer by 68.6% in the third quarter. Hazlett Burt & Watson Inc. now owns 661 shares of the company’s stock worth $31,000 after purchasing an additional 269 shares during the last quarter. Finally, Flagship Harbor Advisors LLC purchased a new position in Super Micro Computer in the 4th quarter worth about $25,000. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

Super Micro Computer Company Profile

Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company’s product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.

Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.