Super Micro Computer (NASDAQ:SMCI) Shares Down 7.6% Following Analyst Downgrade

Super Micro Computer, Inc. (NASDAQ:SMCI) shares fell 7.6% during mid-day trading on Thursday after Rosenblatt Securities lowered their price target on the stock from $50.00 to $32.00. Rosenblatt Securities currently has a buy rating on the stock. Super Micro Computer traded as low as $22.27 and last traded at $22.2330. 23,359,411 shares were traded during mid-day trading, a decline of 37% from the average session volume of 37,146,730 shares. The stock had previously closed at $24.05.

Several other research firms have also issued reports on SMCI. Weiss Ratings reiterated a “hold (c)” rating on shares of Super Micro Computer in a research note on Monday, December 29th. Northland Securities restated a “market perform” rating and set a $22.00 price target on shares of Super Micro Computer in a report on Monday. Citigroup reduced their price objective on shares of Super Micro Computer from $39.00 to $25.00 and set a “neutral” rating for the company in a research report on Tuesday. Bank of America decreased their price objective on shares of Super Micro Computer from $34.00 to $24.00 and set an “underperform” rating for the company in a research note on Tuesday. Finally, Raymond James Financial cut their target price on Super Micro Computer from $50.00 to $35.00 and set an “outperform” rating on the stock in a research note on Wednesday, February 4th. Four equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $37.07.

Key Stories Impacting Super Micro Computer

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

• Positive Sentiment: Partnership activity — Super Micro expanded its Mirantis tie-up to standardize open-source AI cloud deployments, reinforcing its positioning in AI GPU infrastructure and hybrid cloud automation. Super Micro Deepens Mirantis Ties
• Positive Sentiment: Bullish investor views persist among some analysts and commentators who say valuation + AI demand still support a long-term recovery case. These narratives help limit deeper routs for long-term holders. Not All Hope Is Lost: Maintaining Super Micro With A Strong Buy
• Neutral Sentiment: Some brokers are mixed — Rosenblatt cut its price target (to $32) but kept a buy rating, signaling differing analyst views on risk vs. upside. Rosenblatt Lowers Price Target
• Neutral Sentiment: Northland reaffirmed a Market Perform rating, indicating some institutions are pausing rather than selling outright. Northland Reaffirms Market Perform
• Negative Sentiment: DOJ-related headlines and renewed legal scrutiny are the primary catalysts for today’s selloff — coverage highlights indictments and alleged illegal exports, which amplify regulatory and criminal risk to the business and executive team. AI Stock Suffers More Losses as Legal Woes Resume
• Negative Sentiment: Major stock reaction reporting — several outlets note a sharp one-day plunge tied to DOJ charges and lawsuit filings (coverage cites a ~33% swing in some reports), signaling panic/liquidity-driven moves in addition to fundamental concern. SMCI Stock Plunges 33% Amid DOJ Charges and Shareholder Lawsuit
• Negative Sentiment: Multiple shareholder suits and class-action notices allege undisclosed China exposure and securities fraud; law firms have launched investigations and filed complaints, raising the prospect of costly litigation, distractions, and reputational damage. Super Micro Sued by Shareholders (Reuters)
• Negative Sentiment: Analyst downside revisions — Citigroup/Citi and others have slashed price targets (Citigroup to ~$25), citing reputation and regulatory risks; those cuts reduce the near-term valuation support for the stock. Citigroup Lowers Price Target to $25

Institutional Trading of Super Micro Computer

Several hedge funds have recently added to or reduced their stakes in SMCI. Norges Bank bought a new position in shares of Super Micro Computer during the 4th quarter valued at approximately $136,569,000. Clear Street LLC purchased a new stake in Super Micro Computer in the second quarter worth $158,724,000. Clear Street Group Inc. bought a new stake in shares of Super Micro Computer in the third quarter valued at $147,631,000. Marshall Wace LLP lifted its position in shares of Super Micro Computer by 596.4% during the 2nd quarter. Marshall Wace LLP now owns 3,437,714 shares of the company’s stock valued at $168,482,000 after buying an additional 2,944,049 shares during the last quarter. Finally, Vanguard Group Inc. grew its stake in shares of Super Micro Computer by 4.1% during the 3rd quarter. Vanguard Group Inc. now owns 68,848,777 shares of the company’s stock worth $3,300,610,000 after acquiring an additional 2,695,829 shares during the period. Institutional investors own 84.06% of the company’s stock.

Super Micro Computer Trading Down 7.6%

The firm has a fifty day moving average of $30.74 and a two-hundred day moving average of $37.08. The company has a market cap of $13.32 billion, a PE ratio of 16.62, a price-to-earnings-growth ratio of 0.43 and a beta of 1.52. The company has a current ratio of 1.70, a quick ratio of 1.01 and a debt-to-equity ratio of 0.67.

Super Micro Computer (NASDAQ:SMCI) last issued its earnings results on Tuesday, February 3rd. The company reported $0.69 earnings per share for the quarter, topping analysts’ consensus estimates of $0.49 by $0.20. Super Micro Computer had a net margin of 3.11% and a return on equity of 13.22%. The firm had revenue of $12.68 billion during the quarter, compared to analyst estimates of $10.34 billion. During the same quarter last year, the business earned $0.59 earnings per share. The company’s quarterly revenue was up 123.4% on a year-over-year basis. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS. As a group, sell-side analysts predict that Super Micro Computer, Inc. will post 1.86 EPS for the current year.

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.