Super Micro Computer (NASDAQ:SMCI) Stock Falls 5.7% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price was down 5.7% during mid-day trading on Wednesday. The company traded as low as $29.39 and last traded at $29.60. Approximately 87,939,055 shares changed hands during trading, an increase of 102% from the average daily volume of 43,564,195 shares. The stock had previously closed at $31.39.

More Super Micro Computer News

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

• Positive Sentiment: Supermicro reported fiscal Q1 2027 revenue of $19.95 billion, far above analyst expectations, and raised its sales outlook as demand for AI servers remained strong. One report also highlighted quarterly gross margin above the company’s guidance. Article: Super Micro: Major Plot Twist
• Positive Sentiment: New AI-infrastructure collaborations could reinforce Supermicro’s product appeal: its solution with IBM and NVIDIA is designed to improve inference performance, while a separate partnership with Smartbird will support managed enterprise AI clusters. Article: Supermicro Launches KV Cache Solution with IBM and NVIDIA Article: Smartbird Expands Enterprise AI Infrastructure Partner Network with Supermicro
• Positive Sentiment: Several analyst signals were supportive: Bank of America raised its price target and Rosenblatt reaffirmed a Buy rating, citing the company’s growth prospects. Article: BofA lifts Supermicro target Article: Rosenblatt Securities Reaffirms Buy Rating
• Neutral Sentiment: SMCI joined a broader rebound in AI-server stocks, recovering some ground after election-related selling. This may support the shares near term, though the move reflects sector sentiment rather than a new company-specific catalyst. Article: AI Server Stocks Rebound
• Negative Sentiment: Investors remain concerned that rapid sales growth may not translate into equally strong profitability or cash generation. Coverage points to margin pressure, cash strain, and Supermicro’s exposure to the neocloud market as risks. Article: SMCI Stock Sinks After Q1 Results Expose Cash Strain Article: Supermicro Stock Is Still Not a Buy
• Negative Sentiment: A report says CEO Charles Liang sold shares 28 days before promoting growth in AI inference, a development that could raise investor concerns about insider confidence. Article: Supermicro CEO Sold Shares Before Pitching AI Inference Growth

Analysts Set New Price Targets

SMCI has been the subject of a number of recent analyst reports. Mizuho boosted their target price on Super Micro Computer from $35.00 to $43.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 6th. Stifel Nicolaus set a $42.00 price target on shares of Super Micro Computer in a report on Wednesday, August 12th. Zacks Research lowered shares of Super Micro Computer from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 12th. Needham & Company LLC reiterated a “buy” rating and issued a $46.00 price target on shares of Super Micro Computer in a research note on Wednesday, August 12th. Finally, Bank of America boosted their price objective on shares of Super Micro Computer from $38.00 to $39.00 and gave the company an “underperform” rating in a report on Wednesday. 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 company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $43.08.

Super Micro Computer Price Performance

The company has a current ratio of 3.02, a quick ratio of 2.07 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $18.89 billion, a PE ratio of 6.13, a price-to-earnings-growth ratio of 0.46 and a beta of 2.17. The firm has a 50 day moving average price of $37.64 and a 200 day moving average price of $32.67.

Super Micro Computer (NASDAQ:SMCI) last released its earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.53. Super Micro Computer had a return on equity of 38.97% and a net margin of 6.77%. The company had revenue of $19.95 billion for the quarter, compared to the consensus estimate of $16.29 billion. During the same period in the previous year, the business earned $0.35 earnings per share. Super Micro Computer’s quarterly revenue was up 297.5% compared to the same quarter last year. Research analysts anticipate that Super Micro Computer, Inc. will post 4.17 earnings per share for the current year.

Insider Activity

In other news, 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 transaction of $4,502,000.00. Following the transaction, the director directly owned 337,506 shares of the company’s stock, valued at $15,194,520.12. The trade was a 22.86% decrease in their position. The transaction was disclosed in a filing 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, CEO Charles Liang sold 100,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total value of $4,502,000.00. Following the transaction, the chief executive officer owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This trade represents 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. Insiders sold 400,000 shares of company stock worth $16,442,000 in the last ninety days. Corporate insiders own 16.10% of the company’s stock.

Hedge Funds Weigh In On Super Micro Computer

A number of hedge funds have recently modified their holdings of the company. Moors & Cabot Inc. increased its holdings in shares of Super Micro Computer by 5.0% in the 3rd quarter. Moors & Cabot Inc. now owns 40,221 shares of the company’s stock worth $1,652,000 after buying an additional 1,911 shares during the last quarter. Fisher Asset Management LLC bought a new position in shares of Super Micro Computer in the 3rd quarter valued at about $302,000. Private Advisory Group LLC grew its position in Super Micro Computer by 85.9% in the third quarter. Private Advisory Group LLC now owns 28,708 shares of the company’s stock worth $1,179,000 after acquiring an additional 13,268 shares in the last quarter. Eurizon Capital SGR S.p.A. grew its position in Super Micro Computer by 24.1% in the third quarter. Eurizon Capital SGR S.p.A. now owns 35,400 shares of the company’s stock worth $1,454,000 after acquiring an additional 6,868 shares in the last quarter. Finally, Fifth Third Bancorp lifted its position in Super Micro Computer by 19.5% in the third quarter. Fifth Third Bancorp now owns 84,706 shares of the company’s stock worth $3,479,000 after buying an additional 13,817 shares during the last quarter. 84.06% of the stock is currently owned by institutional investors.

Super Micro Computer Company Profile

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.