Super Micro Computer (NASDAQ:SMCI) Shares Down 7.6% Following Analyst Downgrade

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price was down 7.6% during mid-day trading on Thursday after Rosenblatt Securities lowered their price target on the stock from $50.00 to $32.00. Rosenblatt Securities currently has a buy rating on the stock. Super Micro Computer traded as low as $22.27 and last traded at $22.2330. Approximately 23,359,411 shares traded hands during trading, a decline of 37% from the average daily volume of 37,146,730 shares. The stock had previously closed at $24.05.

A number of other research firms have also issued reports on SMCI. Bank of America decreased their price objective on Super Micro Computer from $34.00 to $24.00 and set an “underperform” rating on the stock in a research note on Tuesday. Needham & Company LLC cut their target price on Super Micro Computer from $51.00 to $40.00 and set a “buy” rating for the company in a research note on Wednesday, February 4th. Citigroup decreased their price target on Super Micro Computer from $39.00 to $25.00 and set a “neutral” rating on the stock in a research report on Tuesday. Wall Street Zen raised shares of Super Micro Computer from a “sell” rating to a “hold” rating in a report on Sunday, February 15th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Super Micro Computer in a research note on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $37.07.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Partnership activity — Super Micro expanded its Mirantis tie-up to standardize open-source AI cloud deployments, reinforcing its positioning in AI GPU infrastructure and hybrid cloud automation. Super Micro Deepens Mirantis Ties
• Positive Sentiment: Bullish investor views persist among some analysts and commentators who say valuation + AI demand still support a long-term recovery case. These narratives help limit deeper routs for long-term holders. Not All Hope Is Lost: Maintaining Super Micro With A Strong Buy
• Neutral Sentiment: Some brokers are mixed — Rosenblatt cut its price target (to $32) but kept a buy rating, signaling differing analyst views on risk vs. upside. Rosenblatt Lowers Price Target
• Neutral Sentiment: Northland reaffirmed a Market Perform rating, indicating some institutions are pausing rather than selling outright. Northland Reaffirms Market Perform
• Negative Sentiment: DOJ-related headlines and renewed legal scrutiny are the primary catalysts for today’s selloff — coverage highlights indictments and alleged illegal exports, which amplify regulatory and criminal risk to the business and executive team. AI Stock Suffers More Losses as Legal Woes Resume
• Negative Sentiment: Major stock reaction reporting — several outlets note a sharp one-day plunge tied to DOJ charges and lawsuit filings (coverage cites a ~33% swing in some reports), signaling panic/liquidity-driven moves in addition to fundamental concern. SMCI Stock Plunges 33% Amid DOJ Charges and Shareholder Lawsuit
• Negative Sentiment: Multiple shareholder suits and class-action notices allege undisclosed China exposure and securities fraud; law firms have launched investigations and filed complaints, raising the prospect of costly litigation, distractions, and reputational damage. Super Micro Sued by Shareholders (Reuters)
• Negative Sentiment: Analyst downside revisions — Citigroup/Citi and others have slashed price targets (Citigroup to ~$25), citing reputation and regulatory risks; those cuts reduce the near-term valuation support for the stock. Citigroup Lowers Price Target to $25

Institutional Trading of Super Micro Computer

Several institutional investors and hedge funds have recently modified their holdings of the business. World Investment Advisors grew its holdings in shares of Super Micro Computer by 217.2% during the fourth quarter. World Investment Advisors now owns 22,699 shares of the company’s stock worth $664,000 after purchasing an additional 15,543 shares in the last quarter. Hsbc Holdings PLC raised its stake in Super Micro Computer by 13.7% in the fourth quarter. Hsbc Holdings PLC now owns 1,134,891 shares of the company’s stock valued at $33,203,000 after purchasing an additional 137,180 shares in the last quarter. SHP Wealth Management purchased a new stake in Super Micro Computer in the fourth quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd lifted its position in Super Micro Computer by 55,558.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 33,395 shares of the company’s stock valued at $977,000 after purchasing an additional 33,335 shares during the last quarter. Finally, Sankala Group LLC bought a new stake in Super Micro Computer during the fourth quarter valued at approximately $136,000. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Super Micro Computer Trading Down 7.6%

The stock’s 50 day simple moving average is $30.74 and its 200 day simple moving average is $37.08. The firm has a market cap of $13.32 billion, a PE ratio of 16.62, a PEG ratio of 0.43 and a beta of 1.52. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.01 and a current ratio of 1.70.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings data on Tuesday, February 3rd. The company reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.49 by $0.20. Super Micro Computer had a net margin of 3.11% and a return on equity of 13.22%. The firm had revenue of $12.68 billion for the quarter, compared to analysts’ expectations of $10.34 billion. During the same quarter last year, the company posted $0.59 EPS. The business’s quarterly revenue was up 123.4% on a year-over-year basis. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS. On average, sell-side analysts forecast that Super Micro Computer, Inc. will post 1.86 earnings per share for the current fiscal year.

About Super Micro Computer

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.