Super Micro Computer (NASDAQ:SMCI) Trading Up 4.5% – Here’s Why

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price was up 4.5% during mid-day trading on Friday . The company traded as high as $40.91 and last traded at $39.59. 53,266,812 shares were traded during mid-day trading, an increase of 19% from the average session volume of 44,914,277 shares. The stock had previously closed at $37.87.

Key Super Micro Computer News

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

• Positive Sentiment: Unusually heavy call-option activity suggests increased bullish speculation: investors purchased 472,874 SMCI call options, about 64% above the average daily volume. This may provide near-term support, although options activity does not guarantee sustained gains.
• Positive Sentiment: Super Micro is up about 29% year to date, with analysts citing a record backlog, AI partnerships, rising shipments, and improving margins as factors supporting continued growth. The company’s relatively modest valuation may also attract investors. SMCI Rises 29% Year to Date: Time to Buy, Sell or Hold the Stock?
• Positive Sentiment: SMCI benefited from a broader rotation into memory and AI-related stocks, while strength in the semiconductor and AI-server groups helped the shares outperform several competing hardware companies. Memory, Other AI-Related Stocks Lead the Market’s Top Performers Friday
• Positive Sentiment: Investors also bought SMCI in sympathy with Dell’s strong quarterly results, reinforcing expectations for resilient demand for AI servers and data-center infrastructure. Super Micro Stock Rises in Sympathy After Dell’s Blowout Quarter
• Neutral Sentiment: A sector comparison of second-quarter results gives investors additional context on SMCI’s execution versus other hardware and infrastructure companies, but the article does not identify a decisive new catalyst. Hardware & Infrastructure Stocks Q2 Teardown
• Negative Sentiment: Despite revenue growth of roughly 78% to $39.1 billion last year, investors remain concerned about inconsistent margins. The company therefore faces a profitability test as it expands rapidly, creating a risk to the current AI-driven rally. Supermicro’s Revenue Boom Just Ran Into a Profit Test

Wall Street Analysts Forecast Growth

SMCI has been the topic of a number of recent research reports. Citigroup upped their price target on shares of Super Micro Computer from $33.00 to $39.00 and gave the company a “neutral” rating in a research note on Wednesday, August 12th. Rosenblatt Securities boosted their target price on shares of Super Micro Computer from $45.00 to $51.00 and gave the company a “buy” rating in a report on Wednesday, August 12th. Stifel Nicolaus set a $42.00 target price on Super Micro Computer in a research report on Wednesday, August 12th. Raymond James Financial reaffirmed an “outperform” rating and issued a $48.00 price target on shares of Super Micro Computer in a report on Wednesday, August 12th. Finally, Northland Securities set a $36.00 price target on Super Micro Computer in a research report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $42.13.

Super Micro Computer Stock Performance

The business has a fifty day moving average of $31.64 and a 200 day moving average of $31.23. The company has a market cap of $26.01 billion, a P/E ratio of 12.37, a P/E/G ratio of 0.75 and a beta of 2.00. The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI) last issued its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $11.60 billion. During the same period in the previous year, the firm earned $0.31 EPS. The company’s quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, equities analysts predict that Super Micro Computer, Inc. will post 4.04 EPS for the current year.

Institutional Investors Weigh In On Super Micro Computer

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System raised its position in shares of Super Micro Computer by 2,984.2% in the 2nd quarter. California State Teachers Retirement System now owns 25,071,724 shares of the company’s stock worth $735,354,000 after purchasing an additional 24,258,827 shares during the last quarter. Geode Capital Management LLC increased its stake in 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. raised its stake in 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 during the period. Disciplined Growth Investors Inc. MN raised its position in shares of Super Micro Computer by 16.5% during the second quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company’s stock valued at $476,905,000 after buying an additional 1,381,046 shares during the last quarter. Finally, Norges Bank bought a new stake in Super Micro Computer in the 4th quarter valued at $136,569,000. 84.06% of the stock is 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.