Super Micro Computer (NASDAQ:SMCI) Stock Jumps 6.2% – Should You Buy?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) traded up 6.2% during trading on Friday. The stock traded as high as $29.47 and last traded at $28.76. 36,864,194 shares changed hands during trading, a decline of 16% from the average daily volume of 43,656,902 shares. The stock had previously closed at $27.08.

Trending Headlines about Super Micro Computer

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

Several brokerages recently weighed in on SMCI. The Goldman Sachs Group reaffirmed a “sell” rating and issued a $34.00 target price (up from $30.00) on shares of Super Micro Computer in a report on Wednesday, August 12th. Wall Street Zen raised Super Micro Computer from a “hold” rating to a “buy” rating in a report on Saturday, October 31st. Needham & Company LLC restated a “buy” rating and issued a $46.00 price objective on shares of Super Micro Computer in a research report on Wednesday, August 12th. Northland Securities set a $36.00 price objective on Super Micro Computer in a research note on Wednesday, July 22nd. Finally, Wedbush upped their price objective on Super Micro Computer from $34.00 to $40.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 12th. Four equities 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. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $43.08.

Super Micro Computer Price Performance

The firm’s fifty day moving average price is $37.44 and its 200 day moving average price is $32.66. The company has a quick ratio of 2.07, a current ratio of 3.02 and a debt-to-equity ratio of 0.56. The stock has a market cap of $18.89 billion, a PE ratio of 6.13, a P/E/G ratio of 0.45 and a beta of 2.17.

Super Micro Computer (NASDAQ:SMCI) last issued 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. The firm had revenue of $19.95 billion during the quarter, compared to analyst estimates of $16.29 billion. Super Micro Computer had a net margin of 6.77% and a return on equity of 38.97%. Super Micro Computer’s revenue for the quarter was up 297.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.35 earnings per share. As a group, equities analysts expect that Super Micro Computer, Inc. will post 4.31 EPS for the current fiscal year.

Insider Activity

In other Super Micro Computer news, CEO Charles Liang sold 100,000 shares of the stock in a transaction dated Wednesday, October 7th. The shares were 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 owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This represents a 22.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of the firm’s stock in a transaction dated 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 director owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 400,000 shares of company stock valued at $16,442,000 in the last three months. Insiders own 16.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP lifted its position 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 valued at $92,872,000 after purchasing an additional 111,388 shares during the last quarter. Assenagon Asset Management S.A. grew its stake in shares of Super Micro Computer by 1,770.4% during the second quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock valued at $63,789,000 after buying an additional 2,058,588 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of Super Micro Computer by 1.8% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,158,768 shares of the company’s stock worth $47,591,000 after buying an additional 19,942 shares during the period. Swiss National Bank raised its holdings in shares of Super Micro Computer by 7.6% in the first quarter. Swiss National Bank now owns 1,576,800 shares of the company’s stock worth $35,904,000 after buying an additional 111,100 shares during the period. Finally, Principal Financial Group Inc. lifted its stake in shares of Super Micro Computer by 1.3% during the 1st quarter. Principal Financial Group Inc. now owns 565,746 shares of the company’s stock worth $12,882,000 after acquiring an additional 7,373 shares during the last quarter. 84.06% of the stock is currently owned by institutional investors.

About Super Micro Computer

Super Micro Computer, Inc designs and sells server and storage systems, networking equipment, and related software and services. Its offerings include systems for data centers, cloud computing, enterprise applications, high-performance computing, artificial intelligence, and edge computing.

The company emphasizes application-optimized solutions, including integrated rack-scale systems that combine computing, storage, networking, and management tools. It also provides system configuration, deployment, and support services.

Founded in 1993 and headquartered in San Jose, California, Super Micro serves customers around the world.