Super Micro Computer (NASDAQ:SMCI) Shares Down 7.6% – Here’s Why

Super Micro Computer, Inc. (NASDAQ:SMCI) shares fell 7.6% during trading on Tuesday . The stock traded as low as $38.04 and last traded at $40.64. 46,951,039 shares traded hands during trading, an increase of 24% from the average session volume of 38,001,840 shares. The stock had previously closed at $43.99.

Super Micro Computer News Roundup

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

• Positive Sentiment: Unusually heavy call buying suggests some traders are positioning for a rebound in SMCI, with call volume running well above normal as investors bet the recent weakness may be overdone.
• Positive Sentiment: SMCI says demand for its AI infrastructure remains very strong, with a large order backlog that could support future revenue growth if it can secure enough components and execute on deliveries.
• Neutral Sentiment: Wolfe Research initiated coverage with a Peer Perform rating, noting SMCI is well positioned to benefit from AI spending but faces margin, operational, legal, and regulatory risks that could limit upside. Article Title
• Negative Sentiment: Several reports focused on the company’s financing package, which includes common stock and convertible preferred-related offerings, reinforcing investor worries about dilution and the cost of funding growth. Article Title
• Negative Sentiment: Analyst and commentary pieces also highlighted reputational concerns and share dilution, contributing to the view that the market is reacting negatively to the way SMCI is financing its AI expansion. Article Title

Analysts Set New Price Targets

Several brokerages recently commented on SMCI. Argus reiterated a “hold” rating on shares of Super Micro Computer in a research report on Friday, March 20th. Wall Street Zen upgraded Super Micro Computer from a “sell” rating to a “hold” rating in a research report on Sunday, February 15th. Rosenblatt Securities boosted their price target on Super Micro Computer from $32.00 to $40.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. CJS Securities upgraded Super Micro Computer from a “market underperform” rating to a “market perform” rating in a research report on Wednesday, May 6th. Finally, Mizuho boosted their price objective on Super Micro Computer from $36.00 to $44.00 and gave the stock a “neutral” rating in a research note on Monday, June 1st. Four investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $39.00.

Super Micro Computer Price Performance

The stock has a 50 day simple moving average of $31.99 and a two-hundred day simple moving average of $31.22. The company has a market cap of $19.23 billion, a price-to-earnings ratio of 16.92, a price-to-earnings-growth ratio of 0.68 and a beta of 1.87. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.66 and a quick ratio of 1.29.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.84 earnings per share for the quarter, topping analysts’ consensus estimates of $0.63 by $0.21. The company had revenue of $10.24 billion for the quarter, compared to analyst estimates of $12.39 billion. Super Micro Computer had a return on equity of 17.49% and a net margin of 3.70%.The firm’s revenue for the quarter was up 122.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.31 earnings per share. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. On average, equities research analysts predict that Super Micro Computer, Inc. will post 2.12 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Super Micro Computer

Large investors have recently modified their holdings of the business. OVERSEA CHINESE BANKING Corp Ltd lifted its stake in shares of Super Micro Computer by 210.8% in the 4th quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 49,806 shares of the company’s stock valued at $1,498,000 after purchasing an additional 33,782 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of Super Micro Computer by 54.7% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 107,789 shares of the company’s stock valued at $3,155,000 after purchasing an additional 38,098 shares during the last quarter. Generali Asset Management SPA SGR lifted its stake in shares of Super Micro Computer by 235.2% in the 4th quarter. Generali Asset Management SPA SGR now owns 70,389 shares of the company’s stock valued at $2,060,000 after purchasing an additional 49,389 shares during the last quarter. Peterson Wealth Management acquired a new position in shares of Super Micro Computer in the 3rd quarter valued at $993,000. Finally, Strs Ohio lifted its stake in shares of Super Micro Computer by 41.9% in the 4th quarter. Strs Ohio now owns 237,299 shares of the company’s stock valued at $6,946,000 after purchasing an additional 70,021 shares during the last quarter. Institutional investors and hedge funds own 84.06% of the company’s stock.

Super Micro Computer Company Profile

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.