Super Micro Computer (NASDAQ:SMCI) Shares Up 1.7% – Should You Buy?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) traded up 1.7% during trading on Friday . The stock traded as high as $40.60 and last traded at $39.84. 61,529,450 shares traded hands during trading, an increase of 36% from the average daily volume of 45,376,379 shares. The stock had previously closed at $39.16.

Key Stories Impacting Super Micro Computer

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

• Positive Sentiment: Strong earnings and outlook: Super Micro reported quarterly EPS of $1.70, well above the $0.92 consensus estimate, while revenue rose 93% year over year to $11.12 billion. Management’s fiscal 2027 sales outlook of $65 billion to $72 billion was substantially above Wall Street expectations. Super Micro Climbs 7% on Record Backlog, Dell and Hewlett Packard Enterprise Gain 3%
• Positive Sentiment: Record AI demand: The company disclosed more than $60 billion in orders and a record backlog entering fiscal 2027, reinforcing expectations that hyperscaler and data-center spending will support continued growth. Super Micro Stock Extends Rally After Blockbuster Earnings
• Positive Sentiment: Analyst support and sector momentum: Needham assigned SMCI a “Buy” rating, while Bernstein raised its price target following the stronger guidance. Broader optimism around AI data-center infrastructure, including positive Lenovo results, is also lifting server makers. Super Micro Computer in focus as Bernstein ups price target after strong guidance
• Neutral Sentiment: Technical rebound: SMCI has gained more than 60% since the start of August, prompting investors to assess whether the sharp recovery can continue. The momentum supports the stock but also increases the risk of profit-taking. Stock of the Day: Where Is the Top for Super Micro Computer?
• Negative Sentiment: Margins are expected to retreat: The unusually strong quarter benefited from delayed large AI projects and a more favorable customer mix. Management expects first-quarter fiscal 2027 gross margin to fall to roughly 10.6% as high-volume, lower-margin hyperscale business returns. Super Micro’s Margin Surprise Is Already Guided Back Down
• Negative Sentiment: Execution and capital risks: Quarterly revenue missed estimates despite rapid growth, while the company’s expansion requires substantial working capital. A prior equity and convertible raise increases share dilution, and investors remain concerned about order cancellations, inventory and Super Micro’s execution history.

Analyst Upgrades and Downgrades

SMCI has been the topic of several research reports. Bank of America restated an “underperform” rating on shares of Super Micro Computer in a research note on Wednesday. JPMorgan Chase & Co. lifted their price target on Super Micro Computer from $28.00 to $32.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Wolfe Research began coverage on shares of Super Micro Computer in a report on Thursday, June 11th. They set a “peer perform” rating on the stock. Raymond James Financial restated an “outperform” rating and set a $48.00 price objective on shares of Super Micro Computer in a research report on Wednesday. Finally, Citigroup upped their price target on shares of Super Micro Computer from $33.00 to $39.00 and gave the company a “neutral” rating in a research report on Wednesday. Four research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $42.13.

Super Micro Computer Stock Up 1.7%

The firm has a market cap of $23.96 billion, a price-to-earnings ratio of 12.45, a PEG ratio of 1.19 and a beta of 1.95. The company has a quick ratio of 1.29, a current ratio of 3.87 and a debt-to-equity ratio of 0.65. The firm has a 50 day moving average of $30.20 and a 200 day moving average of $30.60.

Super Micro Computer (NASDAQ:SMCI) last released its earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.92 by $0.78. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The company had revenue of $11.12 billion for the quarter, compared to the consensus estimate of $11.60 billion. During the same quarter in the previous year, the company earned $0.31 EPS. Super Micro Computer’s quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, sell-side analysts predict that Super Micro Computer, Inc. will post 2.97 earnings per share for the current year.

Institutional Trading of Super Micro Computer

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Elyxium Wealth LLC bought a new stake in shares of Super Micro Computer during the fourth quarter worth about $26,000. Arax Advisory Partners purchased a new stake in shares of Super Micro Computer during the 4th quarter valued at $28,000. SHP Wealth Management bought a new stake in Super Micro Computer in the fourth quarter worth about $29,000. Concord Wealth Partners raised its holdings in shares of Super Micro Computer by 2,564.1% in the 4th quarter. Concord Wealth Partners now owns 1,039 shares of the company’s stock worth $30,000 after purchasing an additional 1,000 shares during the period. Finally, Banque Cantonale Vaudoise bought a new stake in shares of Super Micro Computer in the first quarter valued at $37,000. Institutional investors own 84.06% of the company’s stock.

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.