Super Micro Computer (NASDAQ:SMCI) Upgraded to Strong-Buy at Zacks Research

Super Micro Computer (NASDAQ:SMCI) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Thursday,Zacks.com reports.

SMCI has been the subject of several other reports. Bank of America reissued an “underperform” rating on shares of Super Micro Computer in a report on Wednesday, August 12th. Northland Securities set a $36.00 target price on Super Micro Computer in a research report on Wednesday, July 22nd. Stifel Nicolaus set a $42.00 price target on Super Micro Computer in a report on Wednesday, August 12th. Rosenblatt Securities upped their price target on Super Micro Computer from $45.00 to $51.00 and gave the company a “buy” rating in a research report on Wednesday, August 12th. Finally, Wolfe Research began coverage on Super Micro Computer in a research note on Thursday, June 11th. They set a “peer perform” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Super Micro Computer presently has an average rating of “Hold” and an average price target of $42.13.

Super Micro Computer Price Performance

Shares of SMCI stock opened at $37.24 on Thursday. The firm has a market cap of $22.40 billion, a P/E ratio of 11.64, a P/E/G ratio of 0.80 and a beta of 1.95. 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 has a 1-year low of $19.48 and a 1-year high of $58.78. The firm has a fifty day moving average of $30.39 and a two-hundred day moving average of $30.83.

Super Micro Computer (NASDAQ:SMCI) last released its earnings results 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 net margin of 5.71% and a return on equity of 27.83%. The company had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. During the same quarter in the previous year, the firm earned $0.31 EPS. The company’s revenue 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. As a group, research analysts anticipate that Super Micro Computer will post 4.04 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Super Micro Computer

A number of large investors have recently bought and sold shares of SMCI. Geode Capital Management LLC grew its holdings in shares of Super Micro Computer by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 13,808,499 shares of the company’s stock valued at $402,627,000 after purchasing an additional 41,314 shares during the last quarter. Invesco Ltd. raised its position in shares of Super Micro Computer by 21.2% during the 4th quarter. Invesco Ltd. now owns 9,953,780 shares of the company’s stock worth $291,347,000 after purchasing an additional 1,738,749 shares during the period. Disciplined Growth Investors Inc. MN lifted its holdings in shares of 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 worth $476,905,000 after purchasing an additional 1,381,046 shares during the last quarter. Norges Bank bought a new stake in shares of Super Micro Computer in the 4th quarter worth approximately $136,569,000. Finally, Dimensional Fund Advisors LP boosted its position in Super Micro Computer by 2.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock valued at $92,872,000 after purchasing an additional 111,388 shares during the period. Institutional investors own 84.06% of the company’s stock.

Key Headlines 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

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.