Super Micro Computer (NASDAQ:SMCI) Trading Down 1.4% – Here’s Why

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) were down 1.4% during mid-day trading on Monday . The company traded as low as $23.77 and last traded at $23.83. 24,438,168 shares were traded during trading, a decline of 43% from the average session volume of 42,836,629 shares. The stock had previously closed at $24.18.

Key Stories Impacting Super Micro Computer

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

• Positive Sentiment: Super Micro’s preliminary Q4 results showed record backlog and over $60 billion in new orders, signaling sustained demand for AI infrastructure. Reuters: Super Micro says fourth-quarter orders topped $60 billion
• Positive Sentiment: The company also lifted gross margin guidance to 15%–17%, a major improvement that suggests better profitability and margin recovery. WSJ: Super Micro Computer Says Fourth-Quarter Margins Will Be Twice as High as Expected
• Positive Sentiment: Analysts responded with higher price targets, including Needham raising its target to $46 and Barclays lifting its target to $38, reinforcing the bullish read-through. Benzinga analyst target updates
• Neutral Sentiment: Revenue for the quarter was still expected near the low end of guidance, so the market is focusing more on margins and backlog than on top-line growth. Business Wire preliminary business update
• Negative Sentiment: Some investors and analysts remain cautious, arguing that one strong quarter may not fully resolve execution or valuation concerns despite the upbeat outlook. Invezz: why is Goldman Sachs still refusing to turn bullish?
• Negative Sentiment: There is also lingering headline risk from the ITC patent probe over memory imports, which could weigh on sentiment if it escalates. Yahoo Finance: Supermicro Faces ITC Patent Probe Over Memory Imports

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on SMCI. Bank of America reduced their price objective on Super Micro Computer from $34.00 to $24.00 and set an “underperform” rating for the company in a research report on Tuesday, March 24th. JPMorgan Chase & Co. lifted 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. CJS Securities upgraded Super Micro Computer from a “market underperform” rating to a “market perform” rating in a research note on Wednesday, May 6th. Wolfe Research initiated coverage on Super Micro Computer in a research report on Thursday, June 11th. They set a “peer perform” rating for the company. Finally, Needham & Company LLC raised their price target on shares of Super Micro Computer from $40.00 to $46.00 and gave the stock a “buy” rating in a research note on Wednesday. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $39.93.

Super Micro Computer Trading Up 21.3%

The firm has a market cap of $18.60 billion, a price-to-earnings ratio of 16.36, a P/E/G ratio of 0.30 and a beta of 1.94. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.66 and a quick ratio of 1.29. The business has a 50-day moving average of $32.77 and a 200-day moving average of $30.51.

Super Micro Computer (NASDAQ:SMCI) last posted 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. The firm had revenue of $10.24 billion during the quarter, compared to the consensus estimate of $12.39 billion. Super Micro Computer had a return on equity of 17.49% and a net margin of 3.70%.The business’s revenue was up 122.7% compared to the same quarter last year. During the same period last year, the company earned $0.31 earnings per share. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. Research analysts anticipate that Super Micro Computer, Inc. will post 2.13 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of SMCI. Geode Capital Management LLC lifted its stake in Super Micro Computer by 0.3% in the 4th 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 stake in Super Micro Computer by 21.2% in the fourth quarter. Invesco Ltd. now owns 9,953,780 shares of the company’s stock valued at $291,347,000 after buying an additional 1,738,749 shares during the period. Disciplined Growth Investors Inc. MN lifted its position in shares of Super Micro Computer by 16.5% in the second quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company’s stock valued at $476,905,000 after buying an additional 1,381,046 shares during the last quarter. Norges Bank acquired a new stake in shares of Super Micro Computer in the fourth quarter valued at approximately $136,569,000. Finally, Dimensional Fund Advisors LP boosted its stake in shares of 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 worth $92,872,000 after acquiring an additional 111,388 shares during the period. Institutional investors own 84.06% of the company’s stock.

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.