Super Micro Computer (NASDAQ:SMCI) Stock Price Down 3.9% – Time to Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) shares fell 3.9% during trading on Thursday . The company traded as low as $31.16 and last traded at $32.28. 28,325,605 shares were traded during mid-day trading, a decline of 15% from the average session volume of 33,473,816 shares. The stock had previously closed at $33.60.

Key Super Micro Computer News

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

• Positive Sentiment: Company and partners expanding AI product stack and go‑to‑market: Supermicro launched a high‑density AMD EPYC 4005 MicroBlade and announced a full enterprise AI data platform with VAST Data and NVIDIA—both strengthen SMCI’s product breadth for cloud/AI customers and support long‑term revenue growth. Supermicro Introduces Industry’s Highest Density AMD EPYC™ 4005 Series MicroBlade
• Positive Sentiment: Top‑line momentum and raised AI revenue outlook: multiple reports note record AI‑server demand and a company lift to a ~US$40B AI‑focused revenue outlook — a major growth signal that underpins upside if SMCI can convert share gains into durable profits. How Investors May Respond To Super Micro Computer (SMCI) Lifting AI-Focused Revenue Outlook To US$40 Billion
• Positive Sentiment: Valuation/long‑term bull cases argue the selloff is overdone: bullish writeups highlight unique modular design, faster NVIDIA Blackwell launches, DCBBS expansion and an EV/Sales discount versus peers, arguing upside to ~$37–$62 if margins recover. Super Micro: Margin Compression Has Caused The Market To Misprice The Stock
• Neutral Sentiment: Operational pilot shows new use cases (grid demand response): a joint demo proved GPU workloads can provide grid flexibility, which is strategically positive but unlikely to move near‑term earnings materially. CPower, Bentaus and Supermicro Successfully Flex AI Compute Load for Demand Response
• Negative Sentiment: Margin compression and profit‑taking are the main near‑term headwinds: analysts and market commentary point to much lower gross margins (mix, expedite costs, customer concentration) even as revenue surges, prompting investors to cut positions on a “growth without margin” risk. Super Micro Computer falls 6% as AI-hardware sentiment weakens and margin concerns linger
• Negative Sentiment: Analyst pushback and a downgrade/stress‑test thesis increased selling pressure: recent bearish research highlights execution risk and a potential “billion‑dollar stress test,” which amplifies volatility in a sector already sensitive to guidance and margins. Super Micro’s Billion-Dollar Stress Test (Rating Downgrade)
• Negative Sentiment: Mixed insider and institutional flows: some data show recent insider sales and large institutional trims at quarter‑end, which can fuel short‑term downside even amid longer‑term share accumulation by other funds. Super Micro Computer falls 6% as AI-hardware sentiment weakens and margin concerns linger

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on SMCI shares. Citigroup reduced their price objective on Super Micro Computer from $48.00 to $39.00 and set a “neutral” rating for the company in a research report on Tuesday, January 20th. Wedbush cut their price objective on shares of Super Micro Computer from $48.00 to $42.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. KGI Securities upgraded shares of Super Micro Computer from a “neutral” rating to an “outperform” rating and set a $60.00 price target on the stock in a report on Wednesday, November 5th. JPMorgan Chase & Co. decreased their price objective on shares of Super Micro Computer from $43.00 to $40.00 and set a “neutral” rating for the company in a report on Wednesday, November 5th. Finally, Argus set a $64.00 price objective on Super Micro Computer in a research report on Thursday, November 6th. Five research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $43.43.

Super Micro Computer Price Performance

The firm has a 50 day moving average price of $30.89 and a 200 day moving average price of $39.01. The company has a current ratio of 1.70, a quick ratio of 1.01 and a debt-to-equity ratio of 0.67. The stock has a market capitalization of $19.34 billion, a PE ratio of 24.09, a price-to-earnings-growth ratio of 0.61 and a beta of 1.53.

Super Micro Computer (NASDAQ:SMCI) last announced its quarterly earnings data on Tuesday, February 3rd. The company reported $0.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.49 by $0.20. Super Micro Computer had a return on equity of 13.22% and a net margin of 3.11%.The company had revenue of $12.68 billion during the quarter, compared to the consensus estimate of $10.34 billion. During the same period in the previous year, the company posted $0.59 EPS. The firm’s revenue was up 123.4% on a year-over-year basis. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS. Research analysts anticipate that Super Micro Computer, Inc. will post 1.86 earnings per share for the current year.

Institutional Trading of Super Micro Computer

Several institutional investors have recently made changes to their positions in the business. Tempo Wealth LLC purchased a new position in Super Micro Computer in the 4th quarter worth approximately $322,000. Virtu Financial LLC purchased a new position in shares of Super Micro Computer in the fourth quarter worth $4,814,000. Invesco Ltd. boosted its position in shares of Super Micro Computer by 21.2% during the fourth quarter. Invesco Ltd. now owns 9,953,780 shares of the company’s stock worth $291,347,000 after acquiring an additional 1,738,749 shares during the last quarter. Vident Advisory LLC grew its stake in Super Micro Computer by 46.6% during the fourth quarter. Vident Advisory LLC now owns 383,828 shares of the company’s stock valued at $11,235,000 after acquiring an additional 121,992 shares in the last quarter. Finally, Beacon Pointe Advisors LLC grew its stake in Super Micro Computer by 20.4% during the fourth quarter. Beacon Pointe Advisors LLC now owns 7,006 shares of the company’s stock valued at $205,000 after acquiring an additional 1,186 shares in the last quarter. Hedge funds and other 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.