Super Micro Computer (NASDAQ:SMCI) Stock Falls 4.8% – Here’s Why

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price traded down 4.8% on Thursday. The company traded as low as $41.87 and last traded at $42.77. Approximately 38,408,459 shares traded hands during trading, a decline of 13% from the average daily volume of 43,945,012 shares. The stock had previously closed at $44.94.

Key Headlines Impacting Super Micro Computer

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

• Positive Sentiment: Super Micro enters fiscal 2027 with an order pipeline exceeding $60 billion, supported by expanding AI systems and rising enterprise demand. The pipeline strengthens the long-term growth outlook, although investors remain focused on whether the company can sustain its AI capital-expenditure momentum. Can Super Micro Computer Sustain Its AI Capex Momentum in 2027?
• Positive Sentiment: Zacks added SMCI to its Rank #1, or “Strong Buy,” list and also included it among its top value stocks. The upgrades highlight the company’s discounted valuation, AI infrastructure demand, modular systems and liquid-cooling technology. New Strong Buy Stocks for October 8th
• Neutral Sentiment: Mizuho raised its price target for Super Micro to $43. The target signals some analyst support, but offers limited upside relative to recent trading levels. Mizuho raises target for Super Micro Computer stock to USD 43.00
• Neutral Sentiment: SMCI recently advanced alongside other server manufacturers even as the broader technology sector weakened, showing continued investor interest in AI-related hardware. Super Micro Computer Edges Higher as Server Makers Rise
• Negative Sentiment: Shares are giving back part of the prior session’s gain as profit-taking reverses the recent server-sector rally. Dell Technologies and Hewlett Packard Enterprise also weakened, suggesting the move reflects broader sector consolidation rather than company-specific news. Super Micro Drops as Profit Taking Unwinds Server Rally
• Negative Sentiment: Jim Cramer said he prefers Dell over Super Micro, citing what he characterized as major internal structural problems at SMCI. The comments may weigh on sentiment, though they are opinion-based and do not represent a new company filing or formal analyst revision. Jim Cramer Says He Prefers This Monster Stock Over Super Micro

Wall Street Analysts Forecast Growth

SMCI has been the topic of a number of recent research reports. Bank of America reissued an “underperform” rating on shares of Super Micro Computer in a report on Wednesday, August 12th. Zacks Research raised Super Micro Computer from a “hold” rating to a “strong-buy” rating in a report on Thursday, August 20th. Wedbush boosted their price objective on Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a research report on Wednesday, August 12th. Needham & Company LLC restated a “buy” rating and set a $46.00 price objective on shares of Super Micro Computer in a research note on Wednesday, August 12th. Finally, Barclays set a $39.00 target price on Super Micro Computer and gave the stock an “equal weight” rating in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $42.67.

Super Micro Computer Stock Down 4.8%

The firm’s 50 day simple moving average is $37.66 and its 200 day simple moving average is $32.71. The company has a market cap of $28.10 billion, a price-to-earnings ratio of 13.37, a price-to-earnings-growth ratio of 0.84 and a beta of 2.02. The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI) last issued its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%.The business had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. During the same period in the previous year, the firm posted $0.31 earnings per share. The business’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. Sell-side analysts anticipate that Super Micro Computer, Inc. will post 3.94 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Charles Liang sold 100,000 shares of the firm’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the transaction, the chief executive officer directly owned 537,506 shares of the company’s stock, valued at approximately $19,989,848.14. This trade represents a 15.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of the company’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the completion of the sale, the director directly owned 537,506 shares of the company’s stock, valued at $19,989,848.14. The trade was a 15.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.10% of the stock is currently owned by company insiders.

Institutional Trading of Super Micro Computer

Institutional investors have recently made changes to their positions in the stock. Assenagon Asset Management S.A. grew its position in Super Micro Computer by 1,770.4% in the second quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock worth $63,789,000 after buying an additional 2,058,588 shares during the last quarter. Ardmore Road Asset Management LP acquired a new position in shares of Super Micro Computer in the 1st quarter worth $11,954,000. Diversify Wealth Management LLC acquired a new position in shares of Super Micro Computer in the 1st quarter worth $7,455,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Super Micro Computer during the second quarter worth $8,412,000. Finally, Virtu Financial LLC purchased a new stake in shares of Super Micro Computer during the fourth quarter valued at $4,814,000. 84.06% of the stock is owned by institutional investors and hedge funds.

About Super Micro Computer

Super Micro Computer, Inc develops and sells application-optimized server and storage systems for data centers, cloud computing, enterprise IT, artificial intelligence, and other demanding computing environments. The company offers complete computing platforms as well as modular components, allowing customers to configure systems for specific performance, power, and workload requirements.

Its product portfolio includes server and storage systems, workstations, networking equipment, rack-scale solutions, GPU and AI systems, and related software and services.