Super Micro Computer (NASDAQ:SMCI) Shares Gap Up After Better-Than-Expected Earnings

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $31.60, but opened at $34.99. Super Micro Computer shares last traded at $35.7810, with a volume of 46,139,063 shares trading hands.

The company reported $1.70 EPS for the quarter, beating analysts’ consensus estimates of $0.92 by $0.78. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The business had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.60 billion. During the same quarter last year, the business earned $0.31 earnings per share. The business’s revenue for the quarter was up 93.2% on a year-over-year basis. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS.

Super Micro Computer News Summary

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

• Positive Sentiment: Super Micro reported adjusted earnings of $1.70 per share, well above the approximately $0.92 consensus estimate and up from $0.31 a year earlier. Quarterly revenue increased 93.2% year over year to $11.12 billion, while adjusted gross margin improved to 17.6%. Super Micro Stock Surges as Earnings Smash Expectations and Revive AI Hope
• Positive Sentiment: The company issued exceptionally strong guidance, forecasting fiscal 2027 revenue of $65 billion to $72 billion, versus analyst expectations of $53.1 billion. First-quarter fiscal 2027 revenue guidance of $14.5 billion to $15.5 billion also exceeded the $12 billion consensus, while EPS guidance of $1.01 to $1.10 topped estimates of $0.72. Super Micro forecasts upbeat annual revenue
• Positive Sentiment: Investors interpreted the results as evidence that AI server demand and the broader data-center buildout remain strong. Super Micro and CoreWeave both benefited from upbeat forecasts for computing capacity demand. CoreWeave, Super Micro climb on signs of sustained AI buildout
• Positive Sentiment: Analyst sentiment strengthened: Rosenblatt raised its price target from $45 to $51 and assigned a buy rating, while Needham reaffirmed its buy rating with a $46 target. Both targets imply substantial upside from the stock’s $31.60 reference price.
• Neutral Sentiment: A reported collaboration involving SpaceX and xAI to develop a gigawatt-scale data center adds potential strategic value, although the project’s financial contribution and timing remain uncertain.
• Negative Sentiment: Revenue of $11.12 billion fell short of the $11.60 billion estimate, and Super Micro’s net margin remained relatively thin at 3.7%. Investors may continue monitoring whether rapid growth translates into durable profitability and cash flow.

Wall Street Analyst Weigh In

SMCI has been the subject of several research analyst reports. Sanford C. Bernstein restated a “market perform” rating on shares of Super Micro Computer in a report on Wednesday. Needham & Company LLC reiterated a “buy” rating and issued a $46.00 price target on shares of Super Micro Computer in a research report on Wednesday. Barclays set a $39.00 price target on shares of Super Micro Computer and gave the company an “equal weight” rating in a report on Wednesday. Wedbush raised their price objective on shares of Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a research report on Wednesday. Finally, Wolfe Research assumed coverage on shares of Super Micro Computer in a research report on Thursday, June 11th. They set a “peer perform” rating for the company. Four analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $40.21.

Hedge Funds Weigh In On Super Micro Computer

Institutional investors have recently bought and sold shares of the stock. MCF Advisors LLC raised its stake in shares of Super Micro Computer by 9.6% during the 4th quarter. MCF Advisors LLC now owns 3,696 shares of the company’s stock worth $108,000 after purchasing an additional 325 shares during the period. CIBC Private Wealth Group LLC increased its holdings in Super Micro Computer by 11.8% during the third quarter. CIBC Private Wealth Group LLC now owns 3,206 shares of the company’s stock worth $154,000 after buying an additional 339 shares during the last quarter. City State Bank increased its holdings in Super Micro Computer by 4.9% during the fourth quarter. City State Bank now owns 7,500 shares of the company’s stock worth $220,000 after buying an additional 350 shares during the last quarter. World Equity Group Inc. raised its position in Super Micro Computer by 3.8% in the first quarter. World Equity Group Inc. now owns 9,877 shares of the company’s stock worth $225,000 after acquiring an additional 362 shares during the period. Finally, Sunbelt Securities Inc. boosted its stake in Super Micro Computer by 26.4% in the third quarter. Sunbelt Securities Inc. now owns 1,870 shares of the company’s stock valued at $90,000 after acquiring an additional 390 shares during the last quarter. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Super Micro Computer Trading Up 14.5%

The stock’s 50 day simple moving average is $30.58 and its two-hundred day simple moving average is $30.44. The stock has a market capitalization of $21.76 billion, a PE ratio of 19.13, a PEG ratio of 0.37 and a beta of 1.95. 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 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.