Super Micro Computer (NASDAQ:SMCI) Stock Price Down 2.2% – Here’s Why

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) fell 2.2% on Wednesday . The company traded as low as $35.72 and last traded at $36.58. Approximately 35,156,170 shares were traded during mid-day trading, a decline of 23% from the average daily volume of 45,468,363 shares. The stock had previously closed at $37.41.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Northland Securities raised its earnings forecasts. The firm increased its FY2027 EPS estimate to $3.78 from $3.16, lifted quarterly estimates for Q1 through Q4 2027, and projects $4.80 EPS for FY2028. These revisions suggest stronger anticipated demand and profitability for Super Micro’s AI-server business. Northland Securities earnings estimates
• Positive Sentiment: Analyst sentiment improved. Zacks reported that earnings estimates are moving higher and added SMCI to its Rank #1 “Strong Buy” value-stocks list. The company’s relatively low valuation and upward estimate revisions are supporting the bullish view. Earnings Estimates Moving Higher for Super Micro
• Positive Sentiment: Independent investigation clears senior management. Super Micro said its review found no evidence that CEO Charles Liang or other senior executives knew about an alleged Nvidia-chip diversion scheme, and no evidence the company directly sold export-controlled products to restricted parties. This eases a major investor concern, though a cofounder’s pending criminal trial leaves residual legal risk. Supermicro investigation clears CEO
• Neutral Sentiment: Strong growth is offset by execution concerns. Recent results showed quarterly revenue of $11.12 billion, up 93.2% year over year, and EPS of $1.70 versus a $0.92 consensus estimate. However, revenue missed expectations, while analysts continue to question gross-margin durability, working-capital needs and the possibility of future financing or dilution.
• Negative Sentiment: Additional legal exposure remains. Netlist filed a U.S. International Trade Commission complaint alleging DDR5 memory-patent infringement by Super Micro and other companies. The complaint could create costs or operational uncertainty despite the company’s recent investigation outcome. Is Super Micro Fairly Valued As Legal Risks Cloud Its AI Growth Story?

Analyst Upgrades and Downgrades

Several research firms have commented on SMCI. CJS Securities raised Super Micro Computer from a “market underperform” rating to a “market perform” rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. raised their price target on Super Micro Computer from $28.00 to $32.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Needham & Company LLC reiterated a “buy” rating and set a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. Wedbush upped their target price on shares of Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a research report on Wednesday, August 12th. Finally, Wolfe Research initiated coverage on Super Micro Computer in a report on Thursday, June 11th. They issued a “peer perform” rating for the company. Four research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $42.13.

Super Micro Computer Stock Performance

The stock has a market cap of $22.40 billion, a price-to-earnings ratio of 11.64, a P/E/G ratio of 1.09 and a beta of 1.95. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. The stock has a fifty day simple moving average of $30.25 and a two-hundred day simple moving average of $30.79.

Super Micro Computer (NASDAQ:SMCI) last posted its earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.92 by $0.78. The firm had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The company’s revenue for the quarter was up 93.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Analysts expect that Super Micro Computer, Inc. will post 2.97 EPS for the current fiscal year.

Hedge Funds Weigh In On Super Micro Computer

A number of large investors have recently made changes to their positions in SMCI. Elyxium Wealth LLC purchased a new stake in shares of Super Micro Computer during the fourth quarter valued at approximately $26,000. Arax Advisory Partners bought a new stake in Super Micro Computer in the fourth quarter worth $28,000. SHP Wealth Management bought a new stake in shares of Super Micro Computer during the fourth quarter valued at approximately $29,000. Concord Wealth Partners raised its stake in shares of Super Micro Computer by 2,564.1% in the fourth quarter. Concord Wealth Partners now owns 1,039 shares of the company’s stock worth $30,000 after purchasing an additional 1,000 shares during the last quarter. Finally, Banque Cantonale Vaudoise bought a new stake in shares of Super Micro Computer in the first quarter worth approximately $37,000. 84.06% of the stock is owned by 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.