Super Micro Computer (NASDAQ:SMCI) Stock Price Down 8.5% – What’s Next?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price traded down 8.5% on Thursday. The stock traded as low as $25.81 and last traded at $27.08. 61,891,986 shares changed hands during trading, an increase of 42% from the average daily volume of 43,678,414 shares. The stock had previously closed at $29.60.

More Super Micro Computer News

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

• Positive Sentiment: Super Micro reported fiscal Q1 revenue of $19.95 billion, nearly four times the year-earlier level, and earnings of $1.81 per share—both ahead of expectations. It also raised its fiscal 2027 revenue outlook to $72 billion–$82 billion, reflecting strong AI infrastructure demand. SMCI Q1 earnings beat and outlook raised
• Positive Sentiment: A new collaboration with IBM and NVIDIA combines Supermicro storage servers, IBM software and NVIDIA networking and inference technology for AI workloads. The companies say the KV-cache system can reduce response time and improve inference efficiency, offering another potential use case for Supermicro’s infrastructure. Supermicro KV-cache solution announcement
• Positive Sentiment: Supermicro also joined Smartbird’s enterprise AI infrastructure partner network, potentially widening its reach among businesses deploying managed AI clusters. Smartbird partnership announcement
• Neutral Sentiment: Bank of America raised its price target but maintained an underperform rating, underscoring the divide between Super Micro’s rapid growth and concerns over the quality and profitability of that growth. BofA target increase and margin concerns
• Negative Sentiment: Investors remain focused on margin pressure and cash flow despite the sales beat. Reports also highlight that one customer accounted for a large share of quarterly revenue, raising customer-concentration risk. Q1 results and cash-flow concerns
• Negative Sentiment: SMCI is also being swept up in a broader AI-hardware selloff. Market concerns include possible data-center construction constraints and a potential slowdown in infrastructure spending; the selling has affected other server and hardware companies as well. AI hardware sector selloff

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SMCI shares. Stifel Nicolaus set a $42.00 target price on shares of Super Micro Computer in a research note on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 price objective on Super Micro Computer in a research report on Thursday, August 13th. Needham & Company LLC reaffirmed a “buy” rating and issued a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. Zacks Research lowered Super Micro Computer from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Finally, Northland Securities set a $36.00 target price on shares of Super Micro Computer in a report on Wednesday, July 22nd. Four investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Super Micro Computer has an average rating of “Hold” and an average target price of $44.57.

Super Micro Computer Stock Performance

The stock has a market capitalization of $17.79 billion, a price-to-earnings ratio of 5.77, a P/E/G ratio of 0.49 and a beta of 2.17. The company’s fifty day simple moving average is $37.84 and its 200 day simple moving average is $32.70. The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI) last issued its quarterly earnings data on Tuesday, November 3rd. The company reported $1.81 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.53. The company had revenue of $19.95 billion for the quarter, compared to analyst estimates of $16.29 billion. Super Micro Computer had a net margin of 6.77% and a return on equity of 43.17%. The company’s revenue was up 297.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.35 earnings per share. On average, equities research analysts expect that Super Micro Computer, Inc. will post 4.17 earnings per share for the current year.

Insider Activity at Super Micro Computer

In other news, CEO Charles Liang sold 100,000 shares of the company’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 value of $4,502,000.00. Following the transaction, the chief executive officer owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of the stock in a transaction that occurred on Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the transaction, the director owned 337,506 shares in the company, valued at approximately $15,194,520.12. This trade 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 have sold 400,000 shares of company stock valued at $16,442,000 over the last 90 days. Company insiders own 16.10% of the company’s stock.

Institutional Trading of Super Micro Computer

Several hedge funds have recently added to or reduced their stakes in SMCI. Quantinno Capital Management LP lifted its position in shares of Super Micro Computer by 49.0% during 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% in 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 in the first quarter valued at about $1,353,000. Czech National Bank raised its stake in Super Micro Computer by 16.9% during the second quarter. Czech National Bank now owns 160,189 shares of the company’s stock worth $4,698,000 after acquiring an additional 23,158 shares in the last quarter. Finally, Militia Capital Management LLC acquired a new position in Super Micro Computer during the first quarter worth about $488,000. 84.06% of the stock is owned by institutional investors and hedge funds.

Super Micro Computer Company Profile

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.