Super Micro Computer (NASDAQ:SMCI) Trading Down 3% – Time to Sell?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) traded down 3% on Tuesday . The company traded as low as $35.57 and last traded at $35.64. Approximately 26,495,922 shares changed hands during trading, a decline of 41% from the average daily volume of 44,596,066 shares. The stock had previously closed at $36.74.

Super Micro Computer News Roundup

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

• Positive Sentiment: Axelera AI launched its Europa AI accelerator architecture with validated systems from Dell and Supermicro. The partnership could expand Supermicro’s enterprise and data-center product offerings beyond traditional GPU-based systems. Axelera AI Launches Europa with Dell and Supermicro
• Positive Sentiment: Micas Networks said its commercially available co-packaged optics networking switches are available through Supermicro. The relationship may help SMCI participate in the growing market for high-bandwidth AI data-center networking. Micas Networks Expands Manufacturing for Commercial CPO
• Positive Sentiment: Supermicro’s data-center building blocks, or DCBBS, combine servers, networking, power, cooling and software. Analysts say the integrated approach could broaden the company’s addressable market and simplify AI infrastructure deployment. Can SMCI Expand Its Market Opportunity With DCBBS and DLC?
• Neutral Sentiment: Zacks highlighted Supermicro alongside Nvidia, Taiwan Semiconductor, Arista Networks, Dell and Hewlett Packard as AI companies with solid operating momentum. However, the feature also noted that investors are increasingly worried about a potential slowdown in AI spending, making valuation and demand sustainability key issues. Zacks AI Investment Ideas Feature
• Negative Sentiment: Concerns that AI infrastructure spending is facing a reality check have weighed on Supermicro and other AI server stocks. Any evidence of slower orders or customer caution could challenge expectations for continued rapid growth. Super Micro Stock Tumbles on AI Spending Fears
• Negative Sentiment: Susquehanna maintained a Sell rating on SMCI, adding to bearish sentiment and signaling that the firm sees unfavorable risk-reward despite the company’s AI exposure. Susquehanna Maintains Sell Rating on SMCI
• Negative Sentiment: Disclosure of a material IT control weakness has revived governance concerns. Investors may demand clearer remediation plans and stronger oversight, particularly after prior scrutiny of Supermicro’s reporting and controls. Super Micro Computer Flags IT Control Weakness

Wall Street Analyst Weigh In

SMCI has been the subject of a number of research reports. Wolfe Research started coverage on Super Micro Computer in a research note on Thursday, June 11th. They issued a “peer perform” rating for the company. Citigroup increased their target price on Super Micro Computer from $33.00 to $39.00 and gave the stock a “neutral” rating in a report on Wednesday, August 12th. Bank of America reissued an “underperform” rating on shares of Super Micro Computer in a research report on Wednesday, August 12th. Stifel Nicolaus set a $42.00 price target on shares of Super Micro Computer in a research note on Wednesday, August 12th. Finally, The Goldman Sachs Group restated a “sell” rating and set a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $42.13.

Super Micro Computer Price Performance

The firm has a market capitalization of $23.41 billion, a PE ratio of 11.14, a price-to-earnings-growth ratio of 0.76 and a beta of 2.00. The business has a 50-day moving average of $32.96 and a 200 day moving average of $31.56. The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.92 by $0.78. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The firm had revenue of $11.12 billion for the quarter, compared to the consensus estimate of $11.60 billion. During the same period in the previous year, the firm earned $0.31 EPS. The business’s revenue for the quarter 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. As a group, research analysts anticipate that Super Micro Computer, Inc. will post 4.04 EPS for the current fiscal year.

Insider Transactions at Super Micro Computer

In related news, CEO Charles Liang sold 100,000 shares of the business’s stock in a transaction dated Thursday, September 3rd. The shares were 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 in the company, valued at approximately $19,989,848.14. The trade was a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 ownership of the stock. 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 owned by company insiders.

Hedge Funds Weigh In On Super Micro Computer

A number of hedge funds and other institutional investors have recently modified their holdings of the business. MCF Advisors LLC increased its position in shares of Super Micro Computer by 9.6% during the fourth quarter. MCF Advisors LLC now owns 3,696 shares of the company’s stock valued at $108,000 after acquiring an additional 325 shares during the last quarter. World Equity Group Inc. boosted its position in Super Micro Computer by 3.8% in the first quarter. World Equity Group Inc. now owns 9,877 shares of the company’s stock worth $225,000 after purchasing an additional 362 shares during the last quarter. Gulf International Bank UK Ltd boosted its position in Super Micro Computer by 1.7% in the fourth quarter. Gulf International Bank UK Ltd now owns 26,748 shares of the company’s stock worth $783,000 after purchasing an additional 455 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its stake in Super Micro Computer by 0.5% in the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 117,205 shares of the company’s stock valued at $2,669,000 after purchasing an additional 564 shares during the period. Finally, New York Life Investment Management LLC grew its stake in Super Micro Computer by 1.0% in the 4th quarter. New York Life Investment Management LLC now owns 68,734 shares of the company’s stock valued at $2,012,000 after purchasing an additional 671 shares during the period. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Super Micro Computer Company Profile

Super Micro Computer, Inc, doing business as Supermicro, develops and sells application-optimized server and storage systems. Its product portfolio includes servers, workstations, storage platforms, networking equipment, motherboards, chassis, power supplies and related software and support services.

The company also provides high-performance computing and data center infrastructure, including systems designed for artificial intelligence, machine learning, cloud computing, enterprise applications, telecommunications and edge computing.