Super Micro Computer (NASDAQ:SMCI) Shares Down 4.3% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) shares traded down 4.3% during mid-day trading on Friday. The company traded as low as $31.33 and last traded at $32.95. 38,017,569 shares traded hands during mid-day trading, a decline of 12% from the average daily volume of 43,310,898 shares. The stock had previously closed at $34.43.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Super Micro enters earnings with strong AI-server demand, expanding rack-scale systems and liquid-cooling solutions, and a favorable Earnings ESP, according to Zacks. These trends could support revenue growth and potentially an earnings beat. Should You Buy, Sell or Hold SMCI Stock Before Q1 Earnings?
• Positive Sentiment: VyOS Networks opened a waitlist for a pre-validated routing system combining Supermicro hardware with VyOS software. The $29,000-plus system targets internet exchanges, regional ISPs and other operators needing 100 GbE routing, providing a new enterprise use case for Supermicro equipment. VyOS Networks Opens Waitlist for Pre-Validated VyOS + Supermicro Routing System
• Neutral Sentiment: Options markets are pricing in an unusually large approximately 13% move around earnings, signaling elevated volatility rather than a clear bullish or bearish direction. Options Traders Expect a Massive Move in SMCI Stock After Earnings
• Positive Sentiment: One report highlighted Supermicro’s nearly doubled revenue, a roughly $60 billion order backlog and valuation that appears low relative to peers. Those factors reinforce the long-term AI-infrastructure opportunity, although investors are waiting for evidence that backlog converts into profitable growth. Supermicro Has Already Survived the AI Hype Cycle
• Negative Sentiment: Intel’s warning that memory shortages are constraining PC demand has triggered a selloff across computer and server hardware stocks. Investors may fear higher component costs, supply limitations and weaker customer demand could weigh on Super Micro’s margins or deliveries. Intel Warning Hits Hardware Stocks
• Negative Sentiment: Technical momentum has weakened, with the stock posting several recent declines and a bearish signal emerging ahead of earnings. This leaves SMCI vulnerable to further volatility if results or forward guidance fail to meet elevated AI-related expectations. Super Micro Stock Dips as Earnings, Bear Signal Loom

Analyst Ratings Changes

SMCI has been the topic of several research analyst reports. Wall Street Zen raised Super Micro Computer from a “hold” rating to a “buy” rating in a research note on Saturday. The Goldman Sachs Group reiterated a “sell” rating and issued a $34.00 target price (up from $30.00) on shares of Super Micro Computer in a report on Wednesday, August 12th. Raymond James Financial reissued an “outperform” rating and issued a $48.00 price target on shares of Super Micro Computer in a research report on Wednesday, August 12th. Barclays set a $39.00 price target on shares of Super Micro Computer and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $46.00 price objective on shares of Super Micro Computer in a research report on Wednesday, August 12th. Four equities research 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. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $43.07.

Super Micro Computer Stock Performance

The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. The stock has a market cap of $21.65 billion, a P/E ratio of 10.30, a P/E/G ratio of 0.51 and a beta of 2.02. The firm has a 50 day moving average of $38.23 and a two-hundred day moving average of $32.68.

Super Micro Computer (NASDAQ:SMCI) last announced 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. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The company had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.60 billion. During the same quarter last year, the firm earned $0.31 EPS. Super Micro Computer’s revenue for the quarter 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. On average, research analysts predict that Super Micro Computer, Inc. will post 4.17 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Charles Liang sold 100,000 shares of the company’s stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This represents a 22.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of Super Micro Computer stock in a transaction dated 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 represents a 22.86% decrease in their ownership of the stock. 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. Over the last ninety days, insiders sold 400,000 shares of company stock worth $16,442,000. Insiders own 16.10% of the company’s stock.

Hedge Funds Weigh In On Super Micro Computer

Several large investors have recently modified their holdings of the stock. SLT Holdings LLC grew its holdings in Super Micro Computer by 3.0% in the 3rd quarter. SLT Holdings LLC now owns 10,400 shares of the company’s stock valued at $427,000 after buying an additional 300 shares in the last quarter. World Equity Group Inc. lifted its holdings in shares of Super Micro Computer by 3.8% during the first quarter. World Equity Group Inc. now owns 9,877 shares of the company’s stock worth $225,000 after buying an additional 362 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in shares of Super Micro Computer by 0.5% during the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 117,205 shares of the company’s stock worth $2,669,000 after buying an additional 564 shares in the last quarter. MCF Advisors LLC boosted its position in shares of Super Micro Computer by 22.8% in the second quarter. MCF Advisors LLC now owns 3,667 shares of the company’s stock valued at $108,000 after acquiring an additional 680 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Super Micro Computer by 33.0% in the first quarter. EverSource Wealth Advisors LLC now owns 3,788 shares of the company’s stock valued at $86,000 after acquiring an additional 939 shares during the period. 84.06% of the stock is owned by institutional investors.

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.