Super Micro Computer (NASDAQ:SMCI) Shares Up 2.1% – Still a Buy?

Super Micro Computer, Inc. (NASDAQ:SMCI) was up 2.1% on Wednesday. The stock traded as high as $36.40 and last traded at $35.81. 28,894,271 shares changed hands during mid-day trading, a decline of 33% from the average daily volume of 43,394,645 shares. The stock had previously closed at $35.09.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Super Micro-backed Argentum AI is reportedly negotiating approximately $5 billion in debt financing to purchase AI chips for a data center in Poland. The deal could support demand for Supermicro’s servers and strengthen its role in AI infrastructure, although the financing has not been finalized. Why is Super Micro stock soaring today
• Positive Sentiment: The company introduced an NVIDIA Vera CPU rack for dense AI workloads and announced collaborations with Nokia and Nutanix. These initiatives broaden Supermicro’s potential exposure to AI data centers, private-cloud inference and AI-enabled telecommunications. Does Super Micro Computer Have a Bigger AI Infrastructure Story Now?
• Positive Sentiment: Analyst commentary remains constructive in some quarters, citing Supermicro’s integrated AI data-center systems, liquid-cooling technology, expanding rack capacity and upward earnings revisions. Expectations for earnings growth may also be supporting investor interest ahead of the next report. Can SMCI’s DCBBS and DLC Improve Its Financial Outlook?
• Neutral Sentiment: Bernstein maintained a Hold rating, suggesting that the AI opportunity is recognized but that investors still need evidence of sustained execution and improved financial performance. Bernstein Sticks to Its Hold Rating
• Negative Sentiment: A recent review noted that SMCI remains down substantially over the past year after a revenue miss, an export-control-related indictment involving people tied to the company and a reported $5.6 billion stock sale. These issues continue to weigh on confidence and could increase dilution or governance concerns. Super Micro Is Down 32% in a Year

Analysts Set New Price Targets

A number of analysts recently issued reports on SMCI shares. Northland Securities set a $36.00 target price on shares of Super Micro Computer in a research report on Wednesday, July 22nd. Stifel Nicolaus set a $42.00 price objective on shares of Super Micro Computer in a research note on Wednesday, August 12th. Barclays set a $39.00 price objective on shares of Super Micro Computer and gave the stock an “equal weight” rating in a research report on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 target price on shares of Super Micro Computer in a report on Thursday, August 13th. Finally, The Goldman Sachs Group reaffirmed a “sell” rating and set a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a research report on Wednesday, August 12th. Four analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Super Micro Computer presently has an average rating of “Hold” and an average target price of $43.07.

Super Micro Computer Trading Up 2.1%

The business’s 50-day moving average price is $38.38 and its 200 day moving average price is $32.61. 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 firm has a market capitalization of $23.53 billion, a price-to-earnings ratio of 11.19, a PEG ratio of 0.51 and a beta of 2.02.

Super Micro Computer (NASDAQ:SMCI) last announced its earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, beating the consensus estimate of $0.92 by $0.78. The business had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. During the same period in the prior year, the firm earned $0.31 earnings per share. The business’s quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, equities analysts forecast that Super Micro Computer, Inc. will post 4.17 earnings per share for the current fiscal year.

Insider Transactions at Super Micro Computer

In other news, Director Chiu-Chu Liang sold 100,000 shares of the firm’s stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the sale, the director directly owned 337,506 shares in the company, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of Super Micro Computer stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the sale, the chief executive officer directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 400,000 shares of company stock valued at $16,442,000. 16.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Super Micro Computer

Hedge funds have recently bought and sold shares of the business. VIRGINIA RETIREMENT SYSTEMS ET Al increased its holdings in Super Micro Computer by 8.8% during the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 312,187 shares of the company’s stock worth $12,822,000 after purchasing an additional 25,367 shares during the last quarter. Partners Wealth Management LLC acquired a new stake in shares of Super Micro Computer during the third quarter worth approximately $1,626,000. Soltis Investment Advisors LLC bought a new stake in shares of Super Micro Computer in the third quarter worth $207,000. Choreo LLC acquired a new stake in Super Micro Computer in the third quarter valued at $260,000. Finally, North Dakota State Investment Board boosted its stake in Super Micro Computer by 11.8% during the 3rd quarter. North Dakota State Investment Board now owns 17,063 shares of the company’s stock valued at $701,000 after acquiring an additional 1,796 shares during the last quarter. Institutional investors and hedge funds own 84.06% of the company’s stock.

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.