Super Micro Computer (NASDAQ:SMCI) Trading Up 2% After Analyst Upgrade

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price traded up 2% during mid-day trading on Friday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The stock traded as high as $37.67 and last traded at $37.24. Approximately 36,198,789 shares changed hands during mid-day trading, a decline of 20% from the average session volume of 45,434,992 shares. The stock had previously closed at $36.50.

SMCI has been the topic of a number of other reports. Citigroup lifted their price objective on shares of Super Micro Computer from $33.00 to $39.00 and gave the company a “neutral” rating in a research note on Wednesday, August 12th. 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 target on shares of Super Micro Computer in a research report on Thursday, August 13th. Mizuho set a $35.00 price target on shares of Super Micro Computer and gave the stock a “neutral” rating in a research report on Wednesday, August 12th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $46.00 price target on shares of Super Micro Computer in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Super Micro Computer presently has a consensus rating of “Hold” and a consensus target price of $42.13.

Key Stories Impacting Super Micro Computer

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

• Positive Sentiment: Northland Securities raised its earnings forecasts. The firm lifted its FY2027 EPS estimate to $3.78 from $3.16, with increases for each quarter of fiscal 2027. It also projects $4.80 in FY2028 EPS, suggesting expectations for continued growth in AI-server demand. Northland Securities earnings estimates
• Positive Sentiment: Broader earnings revisions are supporting the stock. Zacks said estimates for Super Micro are moving higher and included SMCI on its Rank #1 “Strong Buy” value-stocks list. The company’s relatively low valuation and exposure to expanding AI infrastructure spending are key attractions. Earnings estimates moving higher for Super Micro
• Positive Sentiment: An independent investigation largely cleared senior management. Super Micro said investigators found no evidence that CEO Charles Liang or other senior executives knew about an alleged Nvidia-chip diversion scheme, or that the company directly sold export-controlled products to known restricted parties. Removing some management-related compliance risk appears to have improved investor sentiment. Supermicro investigation clears CEO
• Neutral Sentiment: AI infrastructure growth remains the central opportunity. Super Micro recently reported quarterly revenue of $11.12 billion, up 93.2% year over year, although it fell short of the $11.60 billion consensus estimate. Analysts continue to view the company’s scale and AI-server exposure favorably relative to some peers. Nebius versus Super Micro
• Negative Sentiment: Legal and profitability risks remain. A pending criminal trial involving a cofounder could create additional exposure, while Netlist has filed a U.S. International Trade Commission complaint alleging DDR5 memory-patent infringement. Analysts also caution that component costs, lower gross margins, working-capital needs and potential financing or dilution could limit the benefit of strong sales growth. Super Micro legal risks and valuation

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Advisors Asset Management Inc. bought a new stake in shares of Super Micro Computer in the 1st quarter worth approximately $39,000. EverSource Wealth Advisors LLC boosted its holdings in Super Micro Computer by 42.4% during the second quarter. EverSource Wealth Advisors LLC now owns 3,479 shares of the company’s stock worth $171,000 after buying an additional 1,036 shares in the last quarter. Baird Financial Group Inc. boosted its holdings in Super Micro Computer by 54.9% during the second quarter. Baird Financial Group Inc. now owns 18,955 shares of the company’s stock worth $929,000 after buying an additional 6,718 shares in the last quarter. Flow Traders U.S. LLC acquired a new position in Super Micro Computer in the second quarter worth approximately $277,000. Finally, Daiwa Securities Group Inc. grew its position in Super Micro Computer by 3.4% in the second quarter. Daiwa Securities Group Inc. now owns 85,647 shares of the company’s stock worth $4,198,000 after buying an additional 2,799 shares during the last quarter. 84.06% of the stock is owned by institutional investors and hedge funds.

Super Micro Computer Price Performance

The company has a market cap of $22.40 billion, a P/E ratio of 11.64, a PEG ratio of 0.82 and a beta of 1.95. The company has a fifty day simple moving average of $30.39 and a 200-day simple moving average of $30.83. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, topping the consensus estimate of $0.92 by $0.78. The business had revenue of $11.12 billion during the quarter, compared to analyst estimates of $11.60 billion. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%.The company’s revenue was up 93.2% compared to the same quarter last year. During the same period last year, the company posted $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, sell-side analysts predict that Super Micro Computer, Inc. will post 4.04 earnings per share for the current 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.