Super Micro Computer (NASDAQ:SMCI) Stock Price Down 3% – Here’s Why

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price traded down 3% during mid-day trading on Tuesday . The company traded as low as $35.57 and last traded at $35.64. Approximately 26,495,922 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 44,596,066 shares. The stock had previously closed at $36.74.

More Super Micro Computer News

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

• Positive Sentiment: Axelera AI launched its Europa AI accelerator architecture with validated systems from Dell and Supermicro. The partnership could expand Supermicro’s enterprise and data-center product offerings beyond traditional GPU-based systems. Axelera AI Launches Europa with Dell and Supermicro
• Positive Sentiment: Micas Networks said its commercially available co-packaged optics networking switches are available through Supermicro. The relationship may help SMCI participate in the growing market for high-bandwidth AI data-center networking. Micas Networks Expands Manufacturing for Commercial CPO
• Positive Sentiment: Supermicro’s data-center building blocks, or DCBBS, combine servers, networking, power, cooling and software. Analysts say the integrated approach could broaden the company’s addressable market and simplify AI infrastructure deployment. Can SMCI Expand Its Market Opportunity With DCBBS and DLC?
• Neutral Sentiment: Zacks highlighted Supermicro alongside Nvidia, Taiwan Semiconductor, Arista Networks, Dell and Hewlett Packard as AI companies with solid operating momentum. However, the feature also noted that investors are increasingly worried about a potential slowdown in AI spending, making valuation and demand sustainability key issues. Zacks AI Investment Ideas Feature
• Negative Sentiment: Concerns that AI infrastructure spending is facing a reality check have weighed on Supermicro and other AI server stocks. Any evidence of slower orders or customer caution could challenge expectations for continued rapid growth. Super Micro Stock Tumbles on AI Spending Fears
• Negative Sentiment: Susquehanna maintained a Sell rating on SMCI, adding to bearish sentiment and signaling that the firm sees unfavorable risk-reward despite the company’s AI exposure. Susquehanna Maintains Sell Rating on SMCI
• Negative Sentiment: Disclosure of a material IT control weakness has revived governance concerns. Investors may demand clearer remediation plans and stronger oversight, particularly after prior scrutiny of Supermicro’s reporting and controls. Super Micro Computer Flags IT Control Weakness

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on SMCI. Rosenblatt Securities lifted their target price on shares of Super Micro Computer from $45.00 to $51.00 and gave the company a “buy” rating in a research report on Wednesday, August 12th. Mizuho set a $35.00 target price on Super Micro Computer and gave the stock a “neutral” rating in a report on Wednesday, August 12th. Wedbush lifted their target price on Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a research report on Wednesday, August 12th. Zacks Research raised shares of Super Micro Computer from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 20th. Finally, Raymond James Financial reaffirmed an “outperform” rating and set a $48.00 target price on shares of Super Micro Computer in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $42.13.

Super Micro Computer Price Performance

The company’s 50-day moving average is $32.96 and its 200-day moving average is $31.56. The firm has a market cap of $23.41 billion, a price-to-earnings ratio of 11.14, a price-to-earnings-growth ratio of 0.76 and a beta of 2.00. The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly 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. The company had revenue of $11.12 billion during the quarter, compared to analysts’ expectations of $11.60 billion. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%.Super Micro Computer’s revenue was up 93.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Equities research analysts predict that Super Micro Computer, Inc. will post 4.04 earnings per share for the current year.

Insider Activity at Super Micro Computer

In related news, CEO Charles Liang sold 100,000 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the completion of the transaction, the chief executive officer directly owned 537,506 shares in the company, valued at $19,989,848.14. This represents a 15.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the completion of the transaction, the director directly owned 537,506 shares of the company’s stock, valued at approximately $19,989,848.14. The trade was a 15.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 16.10% of the company’s stock.

Institutional Investors Weigh In On Super Micro Computer

Several hedge funds have recently modified their holdings of the company. MCF Advisors LLC grew its holdings in Super Micro Computer by 22.8% in the second quarter. MCF Advisors LLC now owns 3,667 shares of the company’s stock worth $108,000 after purchasing an additional 680 shares during the period. National Pension Service increased its stake in Super Micro Computer by 191.7% in the second quarter. National Pension Service now owns 99,868 shares of the company’s stock valued at $2,929,000 after purchasing an additional 65,632 shares in the last quarter. NewEdge Advisors LLC raised its holdings in shares of Super Micro Computer by 183.5% during the second quarter. NewEdge Advisors LLC now owns 158,321 shares of the company’s stock valued at $4,644,000 after purchasing an additional 102,474 shares during the period. Baird Financial Group Inc. acquired a new position in shares of Super Micro Computer during the second quarter valued at about $292,000. Finally, Allworth Financial LP boosted its position in shares of Super Micro Computer by 11.3% during the 2nd quarter. Allworth Financial LP now owns 37,880 shares of the company’s stock worth $1,111,000 after purchasing an additional 3,858 shares in the last quarter. Institutional investors and hedge funds own 84.06% of the company’s stock.

About Super Micro Computer

Super Micro Computer, Inc, doing business as Supermicro, develops and sells application-optimized server and storage systems. Its product portfolio includes servers, workstations, storage platforms, networking equipment, motherboards, chassis, power supplies and related software and support services.

The company also provides high-performance computing and data center infrastructure, including systems designed for artificial intelligence, machine learning, cloud computing, enterprise applications, telecommunications and edge computing.