Super Micro Computer (NASDAQ:SMCI) Shares Down 2.7% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) dropped 2.7% during trading on Wednesday . The company traded as low as $26.17 and last traded at $26.89. 25,245,625 shares changed hands during mid-day trading, a decline of 41% from the average daily volume of 43,103,957 shares. The stock had previously closed at $27.65.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Supermicro expanded its end-to-end DCBBS liquid cooling portfolio with rear door heat exchangers, adding products aimed at high-density AI and HPC deployments. Supermicro Expands End-to-End DCBBS Liquid Cooling Portfolio with Rear Door Heat Exchangers for High-Density AI and HPC Infrastructure
• Positive Sentiment: The company also highlighted new AI infrastructure product launches, including a Vera Rubin NVL4 blueprint, reinforcing its positioning in next-generation AI server demand. Super Micro Computer (SMCI) Launches Vera Rubin NVL4 Blueprint For AI Infrastructure
• Neutral Sentiment: Analysts continue to debate whether SMCI is a value opportunity or a value trap, with recent coverage pointing to both attractive pricing and concerns about inventory, cash flow strain, and competition. SMCI Drops 56% From Its 52-Week High: Time to Buy or Sell the Stock?
• Negative Sentiment: SMCI is sliding with the broader AI hardware trade as Dell’s weak reaction to earnings sparked a sector-wide selloff in AI server names. Dell leads broader AI hardware selloff as shares tumble 14%
• Negative Sentiment: Recent commentary also notes that SMCI has dropped sharply from its 52-week high, reflecting investor concern about execution risks and cooling growth expectations. SMCI Drops 56% From Its 52-Week High: Time to Buy or Sell the Stock?

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on SMCI shares. Raymond James Financial lowered their price target on shares of Super Micro Computer from $45.00 to $39.00 in a research report on Friday, June 12th. Weiss Ratings reissued a “hold (c)” rating on shares of Super Micro Computer in a research note on Wednesday, June 24th. JPMorgan Chase & Co. boosted their target price on Super Micro Computer from $28.00 to $32.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Wedbush dropped their price target on Super Micro Computer from $42.00 to $34.00 and set a “neutral” rating for the company in a research report on Wednesday, May 6th. Finally, Citigroup reaffirmed a “neutral” rating and issued a $33.00 price target (up from $31.00) on shares of Super Micro Computer in a report on Monday. Four investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $38.71.

Super Micro Computer Stock Down 2.7%

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 company has a market capitalization of $16.17 billion, a PE ratio of 14.23, a P/E/G ratio of 0.35 and a beta of 1.94. The business’s 50 day simple moving average is $33.66 and its 200 day simple moving average is $30.69.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.21. The business had revenue of $10.24 billion during the quarter, compared to analysts’ expectations of $12.39 billion. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The business’s revenue for the quarter was up 122.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.31 EPS. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. As a group, analysts anticipate that Super Micro Computer, Inc. will post 2.13 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Norges Bank purchased a new stake in shares of Super Micro Computer in the 4th quarter valued at $136,569,000. Assenagon Asset Management S.A. lifted its stake in Super Micro Computer by 1,770.4% during the 2nd quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock worth $63,789,000 after acquiring an additional 2,058,588 shares in the last quarter. Invesco Ltd. boosted its holdings in Super Micro Computer by 21.2% during the 4th quarter. Invesco Ltd. now owns 9,953,780 shares of the company’s stock valued at $291,347,000 after acquiring an additional 1,738,749 shares during the period. Amundi grew its position in Super Micro Computer by 188.8% in the 4th quarter. Amundi now owns 2,421,891 shares of the company’s stock valued at $70,889,000 after acquiring an additional 1,583,229 shares in the last quarter. Finally, Disciplined Growth Investors Inc. MN grew its position in Super Micro Computer by 16.5% in the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company’s stock valued at $476,905,000 after acquiring an additional 1,381,046 shares in the last quarter. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

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.