Super Micro Computer (NASDAQ:SMCI) Trading Up 13.8% on Strong Earnings

Super Micro Computer, Inc. (NASDAQ:SMCI) shares traded up 13.8% on Wednesday following a better than expected earnings announcement. The company traded as high as $34.94 and last traded at $33.76. 115,096,313 shares changed hands during mid-day trading, an increase of 220% from the average session volume of 35,984,230 shares. The stock had previously closed at $29.67.

The company reported $0.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.49 by $0.20. The firm had revenue of $12.68 billion during the quarter, compared to analysts’ expectations of $10.34 billion. Super Micro Computer had a return on equity of 12.70% and a net margin of 3.77%.The company’s revenue was up 123.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.59 EPS. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Blowout Q2 results — SMCI reported fiscal Q2 revenue of about $12.7B (up ~123% YoY) and non‑GAAP EPS $0.69, beating consensus on sales and EPS; markets reacted strongly to the surprise beat. BusinessWire: Q2 Results
• Positive Sentiment: Raised revenue guidance — management lifted FY2026 revenue guidance (to ~$40B) and issued Q3 revenue/EPS guidance above consensus, signaling continued AI/data‑center demand and supporting forward expectations. Reuters: Guidance Raise
• Positive Sentiment: Unusual bullish options flow — investors purchased ~390,768 SMCI call options (≈+51% vs. avg), indicating speculative/levered bullish positioning around the post‑earnings move.
• Positive Sentiment: Analyst support — several outlets and some brokerages reiterated buys or highlighted the beat and growth case post‑results, providing additional buy‑side validation. American Banking News: Rosenblatt Reiterates Buy
• Neutral Sentiment: Price target change — Needham lowered its price target from $51 to $40 but kept a “buy” rating, which tempers upside expectations even as the rating remains positive. The Fly: Needham PT Cut
• Neutral Sentiment: Extremely high volume — trading volume and post‑earnings moves are elevated, which can amplify volatility and create short‑term noise rather than reflect a durable trend.
• Negative Sentiment: Margin pressure — gross margin fell (to ~6.3% in the quarter) and management noted near‑term margin pressure; margin compression is the key risk to profitability despite revenue growth. Barron’s: Margins a Worry
• Negative Sentiment: Critical analysis/questions on sustainability — some analysts/commentators call the record beat a potential red flag and warn that the spike may be driven by concentrated, short‑cycle AI demand rather than sustainable margin expansion. Seeking Alpha: Critical Take

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the stock. JPMorgan Chase & Co. cut their price objective on shares of Super Micro Computer from $43.00 to $40.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Rosenblatt Securities reissued a “buy” rating and set a $55.00 price target on shares of Super Micro Computer in a research report on Monday. Wall Street Zen downgraded shares of Super Micro Computer from a “hold” rating to a “sell” rating in a research note on Saturday, November 15th. Citigroup decreased their price objective on Super Micro Computer from $48.00 to $39.00 and set a “neutral” rating for the company in a report on Tuesday, January 20th. Finally, Sanford C. Bernstein dropped their target price on Super Micro Computer from $46.00 to $42.00 and set a “market perform” rating on the stock in a report on Wednesday, November 5th. Eight analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Super Micro Computer has a consensus rating of “Hold” and a consensus price target of $45.31.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Anfield Capital Management LLC acquired a new stake in Super Micro Computer in the 2nd quarter worth about $25,000. Twin Peaks Wealth Advisors LLC acquired a new stake in Super Micro Computer during the second quarter worth about $25,000. Armstrong Advisory Group Inc. bought a new stake in shares of Super Micro Computer during the 3rd quarter worth approximately $29,000. Hazlett Burt & Watson Inc. boosted its position in shares of Super Micro Computer by 68.6% during the 3rd quarter. Hazlett Burt & Watson Inc. now owns 661 shares of the company’s stock worth $31,000 after acquiring an additional 269 shares in the last quarter. Finally, Orion Capital Management LLC acquired a new position in Super Micro Computer during the second quarter valued at approximately $39,000. 84.06% of the stock is owned by institutional investors and hedge funds.

Super Micro Computer Trading Up 13.8%

The firm’s 50-day simple moving average is $31.36 and its 200 day simple moving average is $41.39. The company has a debt-to-equity ratio of 0.72, a current ratio of 5.39 and a quick ratio of 2.95. The firm has a market capitalization of $20.15 billion, a price-to-earnings ratio of 27.01, a P/E/G ratio of 0.61 and a beta of 1.53.

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.