Zacks Research Upgrades Super Micro Computer (NASDAQ:SMCI) to Strong-Buy

Super Micro Computer (NASDAQ:SMCI) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued on Thursday,Zacks.com reports.

A number of other research firms also recently issued reports on SMCI. The Goldman Sachs Group restated a “sell” rating and set a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a research note on Wednesday, August 12th. Raymond James Financial reiterated an “outperform” rating and issued a $48.00 price objective on shares of Super Micro Computer in a research note on Wednesday, August 12th. Needham & Company LLC reissued a “buy” rating and issued a $46.00 price objective on shares of Super Micro Computer in a report on Wednesday, August 12th. Northland Securities set a $36.00 target price on shares of Super Micro Computer in a research report on Wednesday, July 22nd. Finally, Citigroup lifted their target price on shares of Super Micro Computer from $33.00 to $39.00 and gave the company a “neutral” rating in a report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $42.13.

Super Micro Computer Stock Performance

Shares of SMCI stock opened at $37.24 on Thursday. The stock’s 50-day moving average is $30.39 and its two-hundred day moving average is $30.83. The firm has a market cap of $22.40 billion, a price-to-earnings ratio of 11.64, a PEG ratio of 0.80 and a beta of 1.95. Super Micro Computer has a 1 year low of $19.48 and a 1 year high of $58.78. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87.

Super Micro Computer (NASDAQ:SMCI) last posted its earnings results on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%.The business had revenue of $11.12 billion for the quarter, compared to analysts’ expectations of $11.60 billion. During the same quarter in the previous year, the firm earned $0.31 earnings per share. The business’s 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. Analysts predict that Super Micro Computer will post 4.04 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Quantinno Capital Management LP increased its holdings in shares of Super Micro Computer by 49.0% in the 1st quarter. Quantinno Capital Management LP now owns 155,225 shares of the company’s stock valued at $3,534,000 after purchasing an additional 51,049 shares in the last quarter. Sei Investments Co. lifted its stake in shares of Super Micro Computer by 134.8% in the first quarter. Sei Investments Co. now owns 144,238 shares of the company’s stock valued at $3,284,000 after purchasing an additional 82,820 shares during the period. Generali Asset Management SPA SGR boosted its holdings in Super Micro Computer by 235.2% during the fourth quarter. Generali Asset Management SPA SGR now owns 70,389 shares of the company’s stock worth $2,060,000 after buying an additional 49,389 shares in the last quarter. Strs Ohio boosted its holdings in Super Micro Computer by 41.9% during the fourth quarter. Strs Ohio now owns 237,299 shares of the company’s stock worth $6,946,000 after buying an additional 70,021 shares in the last quarter. Finally, Quent Capital LLC boosted its holdings in Super Micro Computer by 27,103.4% during the fourth quarter. Quent Capital LLC now owns 48,694 shares of the company’s stock worth $1,425,000 after buying an additional 48,515 shares in the last quarter. Institutional investors and hedge funds own 84.06% of the company’s stock.

Key Headlines Impacting Super Micro Computer

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

• Positive Sentiment: Northland Securities raised its earnings forecasts. The firm lifted its FY2027 EPS estimate to $3.78 from $3.16, with increases for each quarter of fiscal 2027. It also projects $4.80 in FY2028 EPS, suggesting expectations for continued growth in AI-server demand. Northland Securities earnings estimates
• Positive Sentiment: Broader earnings revisions are supporting the stock. Zacks said estimates for Super Micro are moving higher and included SMCI on its Rank #1 “Strong Buy” value-stocks list. The company’s relatively low valuation and exposure to expanding AI infrastructure spending are key attractions. Earnings estimates moving higher for Super Micro
• Positive Sentiment: An independent investigation largely cleared senior management. Super Micro said investigators found no evidence that CEO Charles Liang or other senior executives knew about an alleged Nvidia-chip diversion scheme, or that the company directly sold export-controlled products to known restricted parties. Removing some management-related compliance risk appears to have improved investor sentiment. Supermicro investigation clears CEO
• Neutral Sentiment: AI infrastructure growth remains the central opportunity. Super Micro recently reported quarterly revenue of $11.12 billion, up 93.2% year over year, although it fell short of the $11.60 billion consensus estimate. Analysts continue to view the company’s scale and AI-server exposure favorably relative to some peers. Nebius versus Super Micro
• Negative Sentiment: Legal and profitability risks remain. A pending criminal trial involving a cofounder could create additional exposure, while Netlist has filed a U.S. International Trade Commission complaint alleging DDR5 memory-patent infringement. Analysts also caution that component costs, lower gross margins, working-capital needs and potential financing or dilution could limit the benefit of strong sales growth. Super Micro legal risks and valuation

Super Micro Computer Company Profile

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.