Super Micro Computer (NASDAQ:SMCI) Stock Price Down 8.5% – Here’s Why

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price was down 8.5% during mid-day trading on Thursday. The stock traded as low as $25.81 and last traded at $27.08. 61,891,986 shares were traded during trading, an increase of 42% from the average daily volume of 43,678,414 shares. The stock had previously closed at $29.60.

Key Super Micro Computer News

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

• Positive Sentiment: Super Micro reported fiscal Q1 revenue of $19.95 billion, nearly four times the year-earlier level, and earnings of $1.81 per share—both ahead of expectations. It also raised its fiscal 2027 revenue outlook to $72 billion–$82 billion, reflecting strong AI infrastructure demand. SMCI Q1 earnings beat and outlook raised
• Positive Sentiment: A new collaboration with IBM and NVIDIA combines Supermicro storage servers, IBM software and NVIDIA networking and inference technology for AI workloads. The companies say the KV-cache system can reduce response time and improve inference efficiency, offering another potential use case for Supermicro’s infrastructure. Supermicro KV-cache solution announcement
• Positive Sentiment: Supermicro also joined Smartbird’s enterprise AI infrastructure partner network, potentially widening its reach among businesses deploying managed AI clusters. Smartbird partnership announcement
• Neutral Sentiment: Bank of America raised its price target but maintained an underperform rating, underscoring the divide between Super Micro’s rapid growth and concerns over the quality and profitability of that growth. BofA target increase and margin concerns
• Negative Sentiment: Investors remain focused on margin pressure and cash flow despite the sales beat. Reports also highlight that one customer accounted for a large share of quarterly revenue, raising customer-concentration risk. Q1 results and cash-flow concerns
• Negative Sentiment: SMCI is also being swept up in a broader AI-hardware selloff. Market concerns include possible data-center construction constraints and a potential slowdown in infrastructure spending; the selling has affected other server and hardware companies as well. AI hardware sector selloff

Analysts Set New Price Targets

SMCI has been the subject of several research reports. Mizuho increased their price objective on shares of Super Micro Computer from $35.00 to $43.00 and gave the company a “neutral” rating in a research note on Tuesday, October 6th. Wedbush boosted their target price on shares of Super Micro Computer from $34.00 to $40.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 12th. Citigroup reiterated a “neutral” rating and set a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a report on Thursday, October 8th. The Goldman Sachs Group reiterated a “sell” rating and issued a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a research note on Wednesday, August 12th. Finally, Barclays set a $39.00 price objective on Super Micro Computer and gave the company an “equal weight” rating in a report on Wednesday, August 12th. Four research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $44.57.

Super Micro Computer Trading Down 8.5%

The business’s fifty day moving average is $37.84 and its 200-day moving average is $32.70. 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 firm has a market cap of $17.79 billion, a P/E ratio of 5.77, a price-to-earnings-growth ratio of 0.49 and a beta of 2.17.

Super Micro Computer (NASDAQ:SMCI) last posted its earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share for the quarter, topping analysts’ consensus estimates of $1.28 by $0.53. Super Micro Computer had a net margin of 6.77% and a return on equity of 43.17%. The firm had revenue of $19.95 billion for the quarter, compared to analyst estimates of $16.29 billion. During the same period in the previous year, the firm posted $0.35 EPS. The company’s revenue for the quarter was up 297.5% compared to the same quarter last year. Analysts predict that Super Micro Computer, Inc. will post 4.17 EPS for the current year.

Insider Buying and Selling at Super Micro Computer

In related news, CEO Charles Liang sold 100,000 shares of the firm’s stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the transaction, the chief executive officer directly owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This trade represents a 22.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of Super Micro Computer stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the transaction, the director directly owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 400,000 shares of company stock worth $16,442,000. 16.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Super Micro Computer

Several institutional investors and hedge funds have recently made changes to their positions in SMCI. Lido Advisors LLC raised its position in shares of Super Micro Computer by 106.6% during the third quarter. Lido Advisors LLC now owns 27,173 shares of the company’s stock worth $1,116,000 after acquiring an additional 14,019 shares during the last quarter. Cornerstone Wealth Management LLC bought a new stake in Super Micro Computer in the third quarter valued at approximately $204,000. AlphaCore Capital LLC bought a new stake in Super Micro Computer in the third quarter valued at approximately $275,000. Retirement Systems of Alabama increased its position in Super Micro Computer by 3.3% during the 3rd quarter. Retirement Systems of Alabama now owns 118,011 shares of the company’s stock valued at $4,847,000 after purchasing an additional 3,750 shares during the period. Finally, Fulcrum Asset Management LLP increased its position in Super Micro Computer by 926.2% during the 3rd quarter. Fulcrum Asset Management LLP now owns 172,544 shares of the company’s stock valued at $7,078,000 after purchasing an additional 155,730 shares during the period. Institutional investors and hedge funds own 84.06% of the company’s stock.

About Super Micro Computer

Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.

Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.