Super Micro Computer (NASDAQ:SMCI) Trading Down 12.5% on Analyst Downgrade

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price fell 12.5% during mid-day trading on Thursday after Raymond James Financial lowered their price target on the stock from $50.00 to $35.00. Raymond James Financial currently has an outperform rating on the stock. Super Micro Computer traded as low as $29.88 and last traded at $29.5510. 19,968,143 shares were traded during trading, a decline of 43% from the average session volume of 34,935,172 shares. The stock had previously closed at $33.76.

A number of other equities analysts have also recently issued reports on the stock. Zacks Research upgraded shares of Super Micro Computer from a “strong sell” rating to a “hold” rating in a research note on Monday, December 8th. Rosenblatt Securities reissued a “buy” rating and set a $55.00 price target on shares of Super Micro Computer in a research report on Monday. Needham & Company LLC lowered their price objective on Super Micro Computer from $51.00 to $40.00 and set a “buy” rating on the stock in a research report on Wednesday. JPMorgan Chase & Co. cut their target price on Super Micro Computer from $43.00 to $40.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 5th. Finally, Northland Securities set a $63.00 price target on Super Micro Computer in a research note on Wednesday, November 5th. Eight research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $44.13.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Q2 results and guidance: SMCI crushed estimates (Q2 sales ~$12.7B, EPS $0.69) and raised its full-year revenue target to $40B, which is the primary driver of today’s upside as investors refresh the AI-server growth story. BusinessWire: Q2 Results
• Positive Sentiment: Unusual options activity: Traders purchased a large volume of call options (≈390,768 contracts), signaling speculative or hedged bullish positioning that likely amplified the intraday move. (Options flow reported in the news feed.)
• Positive Sentiment: Analyst support: Rosenblatt and other buy-side voices reiterated or maintained bullish stances after the beat, providing institutional confirmation for the rally. AmericanBankingNews: Rosenblatt Reiterates Buy
• Neutral Sentiment: Bull-case writeups and coverage: Multiple bullish analyses argue SMCI remains undervalued if AI server demand and higher‑margin DCBBS adoption accelerate; these narratives support speculative longs but are contingent on execution. Seeking Alpha: Bull Thesis
• Negative Sentiment: Gross-margin deterioration: Adjusted gross margin plunged to ~6–6.4% (vs. double digits previously), reflecting product mix, expedite costs and customer concentration — a structural profitabilty risk that could limit upside if margins don’t recover. Seeking Alpha: Margin Concerns
• Negative Sentiment: Analyst target cut: Needham trimmed its price target (from $51 to $40) even while keeping a Buy rating — a sign that some analysts are tempering upside assumptions despite the beat. AmericanBankingNews: Needham Lowers PT
• Negative Sentiment: “Head‑fake” / smart‑money warnings: Several market pieces warn the post‑earnings rally could be a trap until SMCI proves durable margin improvement and diversification away from large buyers. Invezz: Smart Money Says Sell

Institutional Investors Weigh In On Super Micro Computer

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Blue Trust Inc. grew its position in Super Micro Computer by 16.1% during the second quarter. Blue Trust Inc. now owns 1,557 shares of the company’s stock valued at $76,000 after buying an additional 216 shares during the period. Securian Asset Management Inc. grew its position in shares of Super Micro Computer by 0.9% during the 2nd quarter. Securian Asset Management Inc. now owns 26,834 shares of the company’s stock valued at $1,315,000 after acquiring an additional 246 shares during the period. Wealthcare Advisory Partners LLC grew its position in shares of Super Micro Computer by 1.2% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 21,798 shares of the company’s stock valued at $1,068,000 after acquiring an additional 248 shares during the period. Tokio Marine Asset Management Co. Ltd. increased its stake in shares of Super Micro Computer by 1.4% in the 3rd quarter. Tokio Marine Asset Management Co. Ltd. now owns 19,374 shares of the company’s stock worth $929,000 after purchasing an additional 266 shares in the last quarter. Finally, Hazlett Burt & Watson Inc. raised its holdings in Super Micro Computer by 68.6% in the 3rd quarter. Hazlett Burt & Watson Inc. now owns 661 shares of the company’s stock worth $31,000 after purchasing an additional 269 shares during the period. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Super Micro Computer Stock Down 11.1%

The company has a 50-day moving average of $31.38 and a two-hundred day moving average of $41.34. The company has a debt-to-equity ratio of 0.72, a current ratio of 5.39 and a quick ratio of 2.95. The company has a market capitalization of $17.91 billion, a PE ratio of 22.39, a P/E/G ratio of 0.61 and a beta of 1.53.

Super Micro Computer (NASDAQ:SMCI) last issued its quarterly earnings results on Tuesday, February 3rd. The company reported $0.69 EPS for the quarter, topping analysts’ consensus estimates of $0.49 by $0.20. Super Micro Computer had a return on equity of 13.52% and a net margin of 3.11%.The business had revenue of $12.68 billion during the quarter, compared to analysts’ expectations of $10.34 billion. During the same quarter in the prior year, the business posted $0.59 earnings per share. The business’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. Sell-side analysts anticipate that Super Micro Computer, Inc. will post 1.86 earnings per share for the current fiscal 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.