Super Micro Computer (NASDAQ:SMCI) Stock Falls 5.7% – Time to Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) shares fell 5.7% during trading on Wednesday. The stock traded as low as $29.39 and last traded at $29.60. Approximately 87,939,055 shares traded hands during mid-day trading, an increase of 102% from the average daily volume of 43,564,195 shares. The stock had previously closed at $31.39.

Super Micro Computer News Summary

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

• Positive Sentiment: Fiscal Q1 revenue reached $19.95 billion, up nearly 298% year over year, while adjusted EPS of $1.81 beat estimates. Super Micro also forecast Q2 revenue above expectations and raised its fiscal 2027 revenue outlook to $72 billion–$82 billion, reflecting strong AI-server demand. SMCI Q1 Earnings Beat on Large AI Deployments, Outlook Raised
• Neutral Sentiment: Analyst views remain divided: Rosenblatt reaffirmed a Buy rating with a $57 target, while Bank of America maintained an Underperform rating despite raising its target to $39. Rosenblatt Securities ratings Bank of America ratings
• Negative Sentiment: Investors are focused on margin pressure: gross margin fell to 12.7% from 17.5% in the prior quarter. Rapid growth also tied up cash in inventory and receivables, raising questions about how well sales growth converts into cash. Supermicro’s Sales Quadruple as Cash Drains
• Negative Sentiment: Revenue is increasingly concentrated in AI: one customer reportedly accounts for 44% of sales, and AI-related business represents 71% of revenue. Some investors question whether growth—weighted toward the first half of the fiscal year and tied to a next-generation product ramp—can persist. Broader margin concerns and opposition to data-center expansion are also weighing on AI server stocks. This One Customer Is Now 44% of Super Micro’s Revenue Margin concerns and data-center backlash weigh on AI server makers

Analyst Upgrades and Downgrades

Several research analysts have issued reports on SMCI shares. Mizuho increased their price target on Super Micro Computer from $35.00 to $43.00 and gave the stock a “neutral” rating in a report on Tuesday, October 6th. Northland Securities set a $36.00 price objective on Super Micro Computer in a report on Wednesday, July 22nd. Rosenblatt Securities reaffirmed a “buy” rating and set a $57.00 target price on shares of Super Micro Computer in a research report on Wednesday. Sanford C. Bernstein set a $42.00 target price on Super Micro Computer in a report on Thursday, August 13th. Finally, Oppenheimer raised shares of Super Micro Computer to an “outperform” rating in a research report on Wednesday. Five investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Super Micro Computer has a consensus rating of “Hold” and a consensus price target of $45.60.

Super Micro Computer Stock Down 5.7%

The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07. The stock has a fifty day moving average price of $38.02 and a two-hundred day moving average price of $32.70. The company has a market cap of $19.45 billion, a P/E ratio of 9.25, a price-to-earnings-growth ratio of 0.48 and a beta of 2.17.

Super Micro Computer (NASDAQ:SMCI) last announced its earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.23 by $0.58. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The company had revenue of $19.95 billion for the quarter, compared to analysts’ expectations of $17.53 billion. During the same quarter in the previous year, the firm earned $0.35 earnings per share. Super Micro Computer’s quarterly revenue was up 297.5% on a year-over-year basis. On average, research analysts expect that Super Micro Computer, Inc. will post 4.17 EPS for the current year.

Insider Buying and Selling at Super Micro Computer

In related news, Director Chiu-Chu Liang sold 100,000 shares of the firm’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the transaction, the director directly owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the sale, the chief executive officer owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This trade represents a 22.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 400,000 shares of company stock valued at $16,442,000. Company insiders own 16.10% of the company’s stock.

Institutional Investors Weigh In On Super Micro Computer

Several large investors have recently made changes to their positions in the business. Quantinno Capital Management LP grew its position in Super Micro Computer by 49.0% during the first quarter. Quantinno Capital Management LP now owns 155,225 shares of the company’s stock valued at $3,534,000 after buying an additional 51,049 shares during the period. Sei Investments Co. raised its position in Super Micro Computer by 134.8% in the first quarter. Sei Investments Co. now owns 144,238 shares of the company’s stock worth $3,284,000 after acquiring an additional 82,820 shares during the period. Renaissance Technologies LLC bought a new stake in Super Micro Computer in the first quarter worth about $1,353,000. Czech National Bank boosted its stake in Super Micro Computer by 16.9% in the second quarter. Czech National Bank now owns 160,189 shares of the company’s stock valued at $4,698,000 after acquiring an additional 23,158 shares during the last quarter. Finally, Militia Capital Management LLC purchased a new position in Super Micro Computer in the first quarter valued at about $488,000. 84.06% of the stock is owned by hedge funds and other institutional investors.

About Super Micro Computer

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.