Super Micro Computer (NASDAQ:SMCI) Trading Up 19% Following Better-Than-Expected Earnings

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) were up 19% on Wednesday following a better than expected earnings announcement. The stock traded as high as $38.15 and last traded at $37.61. Approximately 164,272,381 shares changed hands during trading, an increase of 267% from the average daily volume of 44,723,430 shares. The stock had previously closed at $31.60.

The company reported $1.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.78. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The company had revenue of $11.12 billion during the quarter, compared to analyst estimates of $11.60 billion. During the same period last year, the business earned $0.31 EPS. Super Micro Computer’s quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS.

Super Micro Computer News Summary

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

• Positive Sentiment: Strong earnings and AI-driven growth: Super Micro reported adjusted fourth-quarter EPS of $1.70, well above the approximately $0.92 consensus, while revenue rose 93.2% year over year to $11.12 billion. Profit surged as gross margin improved to roughly 17.6%. Super Micro Computer Stock Rallies as Profits, Outlook Top Estimates
• Positive Sentiment: Above-consensus outlook: Management projected fiscal 2027 revenue of $65 billion to $72 billion, substantially above the roughly $53.1 billion analyst consensus. First-quarter fiscal 2027 revenue guidance of $14.5 billion to $15.5 billion and EPS guidance of $1.01 to $1.10 also exceeded expectations, supported by record backlog and demand for AI-optimized servers. Super Micro forecasts upbeat annual revenue
• Positive Sentiment: Analyst support and sector read-through: Rosenblatt raised its target to $51 and maintained a buy rating, while Needham reiterated its buy rating with a $46 target. The forecast also lifted related AI infrastructure and semiconductor stocks, including Nvidia, Dell, Micron and SK Hynix, as investors interpreted the report as evidence that data-center spending remains strong.
• Neutral Sentiment: Mixed Wall Street reaction: Citigroup and Wedbush raised their price targets to $39 and $40, respectively, but both retained neutral ratings, indicating that analysts see improved prospects while remaining cautious about execution and profitability.
• Neutral Sentiment: Elevated trading interest: Traders purchased approximately 375,905 call options, 38% above typical volume. This signals increased speculative interest but does not by itself establish a fundamental change in value.
• Negative Sentiment: Revenue miss and margin risk: Quarterly revenue fell short of the $11.60 billion consensus, and management expects significantly lower first-quarter gross margins as product mix shifts. Analysts also noted continuing margin volatility and a lack of specific free-cash-flow commitments.
• Negative Sentiment: Patent litigation overhang: An ITC patent action naming SMCI, Micron and HPE could create legal and licensing uncertainty, although potential settlements remain possible.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on SMCI. JPMorgan Chase & Co. increased their target price on Super Micro Computer from $28.00 to $32.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of Super Micro Computer in a research note on Wednesday, June 24th. Needham & Company LLC restated a “buy” rating and issued a $46.00 price objective on shares of Super Micro Computer in a report on Wednesday. Mizuho set a $35.00 price objective on Super Micro Computer and gave the company a “neutral” rating in a research report on Wednesday. Finally, Wedbush raised their target price on shares of Super Micro Computer from $34.00 to $40.00 and gave the stock a “neutral” rating in a report on Wednesday. Four investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $41.80.

Hedge Funds Weigh In On Super Micro Computer

Several large investors have recently made changes to their positions in SMCI. Great Lakes Advisors LLC bought a new stake in shares of Super Micro Computer in the 2nd quarter worth about $391,000. Comprehensive Financial Planning Inc. PA bought a new position in shares of Super Micro Computer during the 2nd quarter valued at approximately $43,000. Trust Asset Management LLC bought a new position in shares of Super Micro Computer during the 2nd quarter valued at approximately $164,000. Tema ETFs LLC raised its holdings in Super Micro Computer by 10.5% during the 2nd quarter. Tema ETFs LLC now owns 10,663 shares of the company’s stock valued at $313,000 after buying an additional 1,015 shares during the period. Finally, Redhawk Wealth Advisors Inc. bought a new stake in Super Micro Computer in the second quarter worth $253,000. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

Super Micro Computer Stock Performance

The company has a debt-to-equity ratio of 0.88, a current ratio of 2.66 and a quick ratio of 1.29. The business has a 50-day moving average of $30.58 and a 200-day moving average of $30.44. The company has a market capitalization of $22.62 billion, a P/E ratio of 19.90, a P/E/G ratio of 0.37 and a beta of 1.95.

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.