Super Micro Computer (NASDAQ:SMCI) Trading 11.4% Higher – Should You Buy?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) rose 11.4% during mid-day trading on Friday . The stock traded as high as $34.70 and last traded at $34.38. Approximately 48,918,859 shares changed hands during mid-day trading, an increase of 31% from the average daily volume of 37,307,566 shares. The stock had previously closed at $30.85.

More Super Micro Computer News

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

• Positive Sentiment: Blowout Q2 results and raised guidance — Revenue surged ~123% YoY to ~$12.7B and adjusted EPS beat expectations; management gave stronger-than-expected next-quarter and full-year revenue/earnings guidance, which is driving the rally. Super Micro Computer Tumbles on AI Boom Backlash
• Positive Sentiment: AI server demand and strategic product mix — Investors are buying the narrative that hyperscaler AI demand (NVIDIA/AMD chips) and traction in higher‑margin Data Center Building Block Solutions (DCBBS) can lift long‑term profitability if DCBBS grows as guided. MarketBeat SMCI Coverage
• Neutral Sentiment: Value/analyst debate — Bullish commentary and value score pieces highlight low P/E vs. growth, but views vary; some see it as a long‑term value/AI play while others urge caution. Why SMCI is a Top Value Stock
• Neutral Sentiment: Heavy intraday volume and momentum — The earnings beat triggered large, volatile flows (gaps and spikes), so short-term price moves may be driven as much by momentum trading as by fundamentals. Shares Gap Up After Earnings
• Negative Sentiment: Severe margin compression — Adjusted gross margin fell to ~6.4%, a multiyear low, driven by product mix, expedite costs and pricing pressure; margins are the key risk to sustainable profitability. Seeking Alpha Margin Analysis
• Negative Sentiment: Mixed analyst actions and some bearish takes — Several firms cut price targets (Goldman maintained a sell at $27; others trimmed targets), and some analysts/strategists warn the post‑earnings rally could be a trap. Goldman Sachs Price Target

Analyst Upgrades and Downgrades

Several brokerages have weighed in on SMCI. Needham & Company LLC dropped their price objective on Super Micro Computer from $51.00 to $40.00 and set a “buy” rating for the company in a report on Wednesday. Argus set a $64.00 price target on Super Micro Computer in a research report on Thursday, November 6th. Rosenblatt Securities reaffirmed a “buy” rating and set a $55.00 price objective on shares of Super Micro Computer in a research report on Monday, February 2nd. Mizuho set a $33.00 price objective on shares of Super Micro Computer in a research note on Wednesday. Finally, Raymond James Financial dropped their target price on shares of Super Micro Computer from $50.00 to $35.00 and set an “outperform” rating for the company in a research report on Wednesday. Eight analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $44.13.

Super Micro Computer Price Performance

The business’s fifty day moving average price is $31.35 and its 200 day moving average price is $41.08. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.70 and a quick ratio of 2.95. The stock has a market cap of $20.52 billion, a P/E ratio of 25.66, a PEG ratio of 0.71 and a beta of 1.53.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings data on Tuesday, February 3rd. The company reported $0.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.49 by $0.20. The business had revenue of $12.68 billion during the quarter, compared to analysts’ expectations of $10.34 billion. Super Micro Computer had a net margin of 3.11% and a return on equity of 13.22%. The firm’s quarterly revenue was up 123.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.59 EPS. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS. Sell-side analysts forecast that Super Micro Computer, Inc. will post 1.86 EPS for the current fiscal year.

Institutional Investors Weigh In On Super Micro Computer

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in shares of Super Micro Computer by 2.7% in the 2nd quarter. Vanguard Group Inc. now owns 66,152,948 shares of the company’s stock valued at $3,242,156,000 after purchasing an additional 1,745,179 shares during the last quarter. Norges Bank acquired a new position in Super Micro Computer in the second quarter valued at $150,395,000. Fiduciary Planning LLC bought a new stake in Super Micro Computer during the second quarter valued at $255,000. Focus Financial Network Inc. grew its holdings in Super Micro Computer by 4,042.2% during the 3rd quarter. Focus Financial Network Inc. now owns 264,688 shares of the company’s stock worth $12,689,000 after acquiring an additional 258,298 shares during the period. Finally, BLKBRD Asset Management LP bought a new position in shares of Super Micro Computer in the 2nd quarter worth about $9,486,000. Institutional investors and hedge funds own 84.06% of the company’s stock.

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.