Super Micro Computer (NASDAQ:SMCI) Trading Up 5.2% – Still a Buy?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) traded up 5.2% during mid-day trading on Friday . The company traded as high as $35.64 and last traded at $35.37. 49,534,785 shares changed hands during trading, an increase of 33% from the average session volume of 37,128,152 shares. The stock had previously closed at $33.62.

Super Micro Computer News Roundup

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

• Positive Sentiment: Super Micro’s latest earnings report showed much better profitability than expected, with margins improving sharply and guidance pointing to continued strength next quarter. Investors are reacting to the idea that the company may be turning the corner after a volatile stretch. Super Micro Rises 5% as Margin Beat, Strong Guide Reignite Short Squeeze Debate
• Positive Sentiment: Several Wall Street firms turned more constructive after the results, including price-target increases and buy ratings, which helped support the rebound in the stock. Super Micro Computer Soars on Earnings Beat. Here’s What Comes Next for SMCI Stock.
• Positive Sentiment: The company also announced expanded Arm-based server and OCP rack offerings, reinforcing its position in AI and data-center hardware markets. Super Micro Computer (SMCI) Expands Arm-Based Server and OCP Rack Offerings
• Neutral Sentiment: Despite the operational improvement, the stock is still being weighed by ongoing securities class action headlines and lead-plaintiff deadline reminders, which add legal overhang but do not appear to be driving today’s move as much as earnings and guidance. ROSEN, TRUSTED INVESTOR COUNSEL, Encourages Super Micro Computer, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action – SMCI
• Neutral Sentiment: Some commentary remains cautious on corporate governance and the company’s mixed revenue performance versus expectations, so sentiment is not uniformly bullish even after the rally. Super Micro surges after Q3, but analysts remain neutral on corporate governance concerns
• Negative Sentiment: Class-action notices alleging investor harm and possible export-control disclosure issues remain a headwind that could limit upside if legal risk becomes a larger focus. Robbins LLP Reminds SMCI Investors of the Securities Class Action Lawsuit Against Super Micro Computer, Inc. Alleging the Company Failed to Disclose its Violations of U.S. Export Control Laws

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Mizuho set a $30.00 price target on shares of Super Micro Computer in a report on Wednesday. Needham & Company LLC reaffirmed a “buy” rating and set a $40.00 price objective on shares of Super Micro Computer in a report on Wednesday. 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 report on Tuesday, March 24th. JPMorgan Chase & Co. lifted their target price on Super Micro Computer from $28.00 to $32.00 and gave the company a “neutral” rating in a research note on Wednesday. Finally, Barclays cut their price target on Super Micro Computer from $38.00 to $34.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Four investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $38.00.

Super Micro Computer Stock Performance

The stock’s 50 day moving average is $27.70 and its two-hundred day moving average is $32.31. The firm has a market capitalization of $21.19 billion, a P/E ratio of 18.71, a P/E/G ratio of 0.65 and a beta of 1.69. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.66 and a quick ratio of 1.01.

Super Micro Computer (NASDAQ:SMCI) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.84 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.63 by $0.21. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The firm had revenue of $10.24 billion for the quarter, compared to analysts’ expectations of $12.39 billion. During the same period last year, the firm earned $0.31 earnings per share. The business’s revenue for the quarter was up 122.7% on a year-over-year basis. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. As a group, equities analysts anticipate that Super Micro Computer, Inc. will post 1.9 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Oslo Pensjonsforsikring AS acquired a new stake in shares of Super Micro Computer during the first quarter worth $165,000. Baader Bank Aktiengesellschaft acquired a new position in Super Micro Computer in the first quarter valued at about $472,000. Hollencrest Capital Management boosted its holdings in Super Micro Computer by 1,889.2% during the first quarter. Hollencrest Capital Management now owns 3,322 shares of the company’s stock worth $76,000 after buying an additional 3,155 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in Super Micro Computer by 2.8% during the first quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock worth $92,872,000 after buying an additional 111,388 shares during the last quarter. Finally, Parallel Advisors LLC grew its position in shares of Super Micro Computer by 62.4% during the 1st quarter. Parallel Advisors LLC now owns 5,923 shares of the company’s stock worth $135,000 after buying an additional 2,276 shares during the period. 84.06% of the stock is currently owned by institutional investors.

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.