Super Micro Computer (NASDAQ:SMCI) Stock Price Down 5.7% – What’s Next?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price was down 5.7% during trading on Wednesday. The company traded as low as $29.39 and last traded at $29.60. Approximately 87,939,055 shares traded hands during mid-day trading, an increase of 102% from the average session volume of 43,564,195 shares. The stock had previously closed at $31.39.

Key Super Micro Computer News

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

• Positive Sentiment: Fiscal Q1 revenue reached $19.95 billion, up nearly 298% year over year, while adjusted EPS of $1.81 beat estimates. Super Micro also forecast Q2 revenue above expectations and raised its fiscal 2027 revenue outlook to $72 billion–$82 billion, reflecting strong AI-server demand. SMCI Q1 Earnings Beat on Large AI Deployments, Outlook Raised
• Neutral Sentiment: Analyst views remain divided: Rosenblatt reaffirmed a Buy rating with a $57 target, while Bank of America maintained an Underperform rating despite raising its target to $39. Rosenblatt Securities ratings Bank of America ratings
• Negative Sentiment: Investors are focused on margin pressure: gross margin fell to 12.7% from 17.5% in the prior quarter. Rapid growth also tied up cash in inventory and receivables, raising questions about how well sales growth converts into cash. Supermicro’s Sales Quadruple as Cash Drains
• Negative Sentiment: Revenue is increasingly concentrated in AI: one customer reportedly accounts for 44% of sales, and AI-related business represents 71% of revenue. Some investors question whether growth—weighted toward the first half of the fiscal year and tied to a next-generation product ramp—can persist. Broader margin concerns and opposition to data-center expansion are also weighing on AI server stocks. This One Customer Is Now 44% of Super Micro’s Revenue Margin concerns and data-center backlash weigh on AI server makers

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. Sanford C. Bernstein set a $42.00 price objective on Super Micro Computer in a report on Thursday, August 13th. Wall Street Zen raised shares of Super Micro Computer from a “hold” rating to a “buy” rating in a report on Saturday. Citigroup reiterated a “neutral” rating and issued a $45.00 price objective (up from $39.00) on shares of Super Micro Computer in a research note on Thursday, October 8th. Needham & Company LLC reissued a “buy” rating and set a $46.00 target price on shares of Super Micro Computer in a report on Wednesday, August 12th. Finally, Raymond James Financial restated an “outperform” rating and set a $65.00 target price on shares of Super Micro Computer in a research report on Wednesday. Five equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Super Micro Computer presently has an average rating of “Hold” and an average price target of $45.60.

Super Micro Computer Stock Performance

The company’s fifty day simple moving average is $38.02 and its 200 day simple moving average is $32.70. The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $19.45 billion, a P/E ratio of 9.25, a P/E/G ratio of 0.48 and a beta of 2.17.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.58. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The firm had revenue of $19.95 billion for the quarter, compared to analysts’ expectations of $17.53 billion. During the same quarter in the prior year, the firm posted $0.35 earnings per share. The business’s quarterly revenue was up 297.5% on a year-over-year basis. As a group, sell-side analysts forecast that Super Micro Computer, Inc. will post 4.17 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Super Micro Computer news, Director Chiu-Chu Liang sold 100,000 shares of Super Micro Computer stock in a transaction that occurred on 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 sale, the director directly owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 7th. The stock was 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 directly owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This represents a 22.86% 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 sold 400,000 shares of company stock worth $16,442,000 over the last ninety days. 16.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Super Micro Computer

Large investors have recently added to or reduced their stakes in the company. Quantinno Capital Management LP lifted its position in Super Micro Computer by 49.0% in the 1st quarter. Quantinno Capital Management LP now owns 155,225 shares of the company’s stock worth $3,534,000 after buying an additional 51,049 shares during the last quarter. Sei Investments Co. grew its position in Super Micro Computer by 134.8% during the first quarter. Sei Investments Co. now owns 144,238 shares of the company’s stock valued at $3,284,000 after acquiring an additional 82,820 shares during the last quarter. Renaissance Technologies LLC bought a new position in Super Micro Computer during the first quarter valued at approximately $1,353,000. Czech National Bank grew its position in Super Micro Computer by 16.9% during the second quarter. Czech National Bank now owns 160,189 shares of the company’s stock valued at $4,698,000 after acquiring an additional 23,158 shares during the last quarter. Finally, Militia Capital Management LLC purchased a new position in shares of Super Micro Computer during the first quarter worth approximately $488,000. Hedge funds and other institutional investors own 84.06% of the company’s stock.

About Super Micro Computer

Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.

Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.