Super Micro Computer (NASDAQ:SMCI) Stock Price Down 2.3% – Time to Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price dropped 2.3% during mid-day trading on Tuesday . The company traded as low as $36.22 and last traded at $37.41. 50,847,923 shares traded hands during trading, an increase of 12% from the average daily volume of 45,486,039 shares. The stock had previously closed at $38.28.

More Super Micro Computer News

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

• Positive Sentiment: Super Micro’s latest quarter showed powerful growth: revenue rose 93.2% year over year to $11.12 billion, while adjusted EPS of $1.70 exceeded the $0.92 consensus estimate. Management cited robust AI and data-center demand, a record backlog and a broader “total data center building block” strategy. Super Micro’s Q2 Earnings Call: Our Top 5 Analyst Questions
• Positive Sentiment: Demand for Nvidia-powered, liquid-cooled AI server racks and expanded enterprise and CPU-focused product lines supports the long-term growth outlook. Analysts also point to improving product mix and a valuation that could benefit if hyperscaler capital spending and AI adoption remain strong. Super Micro: A Massive Safety Margin Is Priced In
• Neutral Sentiment: The stock’s recent surge—reported at roughly 67% over one month—has increased profit-taking risk. While the rally is supported by AI demand and backlog strength, investors are debating whether the gains have already priced in much of the favorable outlook. SMCI Surges 67% in a Month: Time to Hold or Fold the Stock?
• Negative Sentiment: Quarterly revenue fell short of Wall Street’s $11.60 billion expectation despite the EPS beat, keeping attention on execution and future margins. Inventory management, competition and customer/product mix remain key risks. What’s Behind the Super Micro Computer Stock Pullback Tuesday?
• Negative Sentiment: A new patent complaint involving DDR5 memory modules has pressured AI-server makers, including Super Micro, adding a legal overhang to an already volatile sector. Super Micro Computer Pulls Back as DDR5 Patent Fight Hits AI Server Makers
• Negative Sentiment: Relative-value commentary favored nVent Electric over SMCI because of nVent’s data-center backlog and steadier earnings outlook, potentially limiting enthusiasm for Super Micro despite its lower valuation. NVT vs. SMCI: Which Data Center Infrastructure Stock Is a Better Buy?

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Rosenblatt Securities lifted their price target on Super Micro Computer from $45.00 to $51.00 and gave the company a “buy” rating in a report on Wednesday, August 12th. Barclays set a $39.00 price objective on Super Micro Computer and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. JPMorgan Chase & Co. raised their target price on Super Micro Computer from $28.00 to $32.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. CJS Securities raised Super Micro Computer from a “market underperform” rating to a “market perform” rating in a research note on Wednesday, May 6th. Finally, Citigroup boosted their price target on Super Micro Computer from $33.00 to $39.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 12th. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Super Micro Computer has an average rating of “Hold” and a consensus price target of $42.13.

Super Micro Computer Price Performance

The business’s 50-day simple moving average is $30.08 and its 200 day simple moving average is $30.65. The company has a market capitalization of $22.49 billion, a P/E ratio of 11.69, a P/E/G ratio of 1.19 and a beta of 1.95. The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.78. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The business had revenue of $11.12 billion during the quarter, compared to analysts’ expectations of $11.60 billion. During the same period last year, the firm posted $0.31 earnings per share. The business’s revenue was up 93.2% on a year-over-year basis. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, sell-side analysts anticipate that Super Micro Computer, Inc. will post 2.97 EPS for the current year.

Hedge Funds Weigh In On Super Micro Computer

Several hedge funds have recently modified their holdings of SMCI. Geode Capital Management LLC raised its stake in shares of Super Micro Computer by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 13,808,499 shares of the company’s stock worth $402,627,000 after buying an additional 41,314 shares in the last quarter. Invesco Ltd. boosted its position in shares of Super Micro Computer by 21.2% during the 4th quarter. Invesco Ltd. now owns 9,953,780 shares of the company’s stock valued at $291,347,000 after purchasing an additional 1,738,749 shares in the last quarter. Disciplined Growth Investors Inc. MN grew its stake in shares of Super Micro Computer by 16.5% in the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company’s stock worth $476,905,000 after purchasing an additional 1,381,046 shares during the last quarter. Norges Bank acquired a new position in shares of Super Micro Computer in the 4th quarter worth approximately $136,569,000. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Super Micro Computer by 2.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock worth $92,872,000 after purchasing an additional 111,388 shares in the last quarter. 84.06% of the stock is currently owned by institutional investors and hedge funds.

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.