Super Micro Computer (NASDAQ:SMCI) Shares Down 4.3% – Here’s What Happened

Super Micro Computer, Inc. (NASDAQ:SMCI) fell 4.3% on Friday. The stock traded as low as $31.33 and last traded at $32.95. 38,017,569 shares traded hands during mid-day trading, a decline of 12% from the average daily volume of 43,310,898 shares. The stock had previously closed at $34.43.

Key Super Micro Computer News

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

• Positive Sentiment: Super Micro enters earnings with strong AI-server demand, expanding rack-scale systems and liquid-cooling solutions, and a favorable Earnings ESP, according to Zacks. These trends could support revenue growth and potentially an earnings beat. Should You Buy, Sell or Hold SMCI Stock Before Q1 Earnings?
• Positive Sentiment: VyOS Networks opened a waitlist for a pre-validated routing system combining Supermicro hardware with VyOS software. The $29,000-plus system targets internet exchanges, regional ISPs and other operators needing 100 GbE routing, providing a new enterprise use case for Supermicro equipment. VyOS Networks Opens Waitlist for Pre-Validated VyOS + Supermicro Routing System
• Neutral Sentiment: Options markets are pricing in an unusually large approximately 13% move around earnings, signaling elevated volatility rather than a clear bullish or bearish direction. Options Traders Expect a Massive Move in SMCI Stock After Earnings
• Positive Sentiment: One report highlighted Supermicro’s nearly doubled revenue, a roughly $60 billion order backlog and valuation that appears low relative to peers. Those factors reinforce the long-term AI-infrastructure opportunity, although investors are waiting for evidence that backlog converts into profitable growth. Supermicro Has Already Survived the AI Hype Cycle
• Negative Sentiment: Intel’s warning that memory shortages are constraining PC demand has triggered a selloff across computer and server hardware stocks. Investors may fear higher component costs, supply limitations and weaker customer demand could weigh on Super Micro’s margins or deliveries. Intel Warning Hits Hardware Stocks
• Negative Sentiment: Technical momentum has weakened, with the stock posting several recent declines and a bearish signal emerging ahead of earnings. This leaves SMCI vulnerable to further volatility if results or forward guidance fail to meet elevated AI-related expectations. Super Micro Stock Dips as Earnings, Bear Signal Loom

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on SMCI shares. Sanford C. Bernstein set a $42.00 price target on Super Micro Computer in a research note on Thursday, August 13th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Super Micro Computer in a report on Monday, September 21st. Needham & Company LLC reaffirmed a “buy” rating and issued a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. The Goldman Sachs Group reaffirmed 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. Finally, Barclays set a $39.00 target price on shares of Super Micro Computer and gave the stock an “equal weight” rating in a research report on Wednesday, August 12th. Four investment 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’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $43.07.

Super Micro Computer Stock Down 4.3%

The firm has a market cap of $21.65 billion, a P/E ratio of 10.30, a price-to-earnings-growth ratio of 0.56 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. The firm has a fifty day moving average of $38.30 and a 200-day moving average of $32.66.

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

Insider Transactions at Super Micro Computer

In related news, CEO Charles Liang sold 100,000 shares of the firm’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the transaction, the chief executive officer directly owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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 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 transaction of $4,502,000.00. Following the completion of the sale, the director owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This trade represents a 22.86% decrease in their position. 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 ninety days, insiders have sold 400,000 shares of company stock worth $16,442,000. 16.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SMCI. Dimensional Fund Advisors LP lifted its holdings 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. Assenagon Asset Management S.A. boosted its position in shares of Super Micro Computer by 1,770.4% during the 2nd quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock worth $63,789,000 after acquiring an additional 2,058,588 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. increased its stake in Super Micro Computer by 1.8% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,158,768 shares of the company’s stock valued at $47,591,000 after acquiring an additional 19,942 shares during the last quarter. Swiss National Bank increased its stake in Super Micro Computer by 7.6% in the first quarter. Swiss National Bank now owns 1,576,800 shares of the company’s stock valued at $35,904,000 after acquiring an additional 111,100 shares during the last quarter. Finally, Principal Financial Group Inc. increased its stake in Super Micro Computer by 1.3% in the first quarter. Principal Financial Group Inc. now owns 565,746 shares of the company’s stock valued at $12,882,000 after acquiring an additional 7,373 shares during the last quarter. 84.06% of the stock is owned by institutional investors.

Super Micro Computer Company Profile

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.