Super Micro Computer (NASDAQ:SMCI) Shares Gap Up on Analyst Upgrade

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price gapped up prior to trading on Wednesday after Barclays raised their price target on the stock from $34.00 to $38.00. The stock had previously closed at $25.50, but opened at $28.89. Barclays currently has an equal weight rating on the stock. Super Micro Computer shares last traded at $31.3670, with a volume of 45,674,079 shares traded.

SMCI has been the topic of a number of other research reports. Wedbush decreased their price objective on shares of Super Micro Computer from $42.00 to $34.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 6th. Raymond James Financial reduced their price target on Super Micro Computer from $45.00 to $39.00 in a report on Friday, June 12th. JPMorgan Chase & Co. upped their target price on Super Micro Computer from $28.00 to $32.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. The Goldman Sachs Group reissued a “sell” rating on shares of Super Micro Computer in a report on Wednesday, May 6th. Finally, Northland Securities lifted their price target on Super Micro Computer from $22.00 to $34.00 in a research note on Wednesday, May 6th. Four research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Super Micro Computer has an average rating of “Hold” and a consensus target price of $39.79.

Super Micro Computer News Roundup

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

• Positive Sentiment: Super Micro raised its gross margin outlook to 15% to 17%, signaling much stronger profitability than previously expected. Wall Street Journal article
• Positive Sentiment: The company said fourth-quarter orders topped $60 billion, pointing to robust demand for its AI server systems and a very large backlog. Reuters article
• Positive Sentiment: Needham lifted its price target on SMCI to $46 from $40 and reiterated a Buy rating, suggesting more upside if execution improves. StreetInsider article
• Neutral Sentiment: Super Micro updated Q4 revenue guidance to about $11.0 billion, which appears below consensus, but investors are focusing more on the stronger margin outlook and backlog. Business Wire article
• Negative Sentiment: Goldman Sachs remains cautious despite the rally, arguing that one strong quarter may not be enough to prove the business model has fully improved. Invezz article
• Negative Sentiment: The stock still faces overhangs from prior weakness and an ITC patent probe over memory imports, which could add legal and operational risk. Yahoo Finance article

Institutional Trading of Super Micro Computer

Several hedge funds and other institutional investors have recently modified their holdings of the company. Trust Asset Management LLC bought a new position in Super Micro Computer during the second quarter valued at approximately $164,000. Tema ETFs LLC increased its position in shares of Super Micro Computer by 10.5% during the second quarter. Tema ETFs LLC now owns 10,663 shares of the company’s stock valued at $313,000 after purchasing an additional 1,015 shares during the period. Redhawk Wealth Advisors Inc. bought a new position in shares of Super Micro Computer during the 2nd quarter worth about $253,000. Contravisory Investment Management Inc. bought a new position in shares of Super Micro Computer during the 2nd quarter worth approximately $49,000. Finally, World Equity Group Inc. boosted its stake in shares of Super Micro Computer by 21.3% in the 2nd quarter. World Equity Group Inc. now owns 11,977 shares of the company’s stock valued at $351,000 after purchasing an additional 2,100 shares in the last quarter. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

Super Micro Computer Stock Performance

The stock has a market capitalization of $18.67 billion, a price-to-earnings ratio of 16.42, a price-to-earnings-growth ratio of 0.30 and a beta of 1.94. The stock’s 50-day simple moving average is $32.77 and its 200 day simple moving average is $30.51. The company has a quick ratio of 1.29, a current ratio of 2.66 and a debt-to-equity ratio of 0.88.

Super Micro Computer (NASDAQ:SMCI) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.84 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.21. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The business had revenue of $10.24 billion during the quarter, compared to analyst estimates of $12.39 billion. During the same quarter last year, the business posted $0.31 earnings per share. Super Micro Computer’s revenue for the quarter was up 122.7% compared to the same quarter last year. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. Analysts expect that Super Micro Computer, Inc. will post 2.13 earnings per share for the current fiscal year.

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.