Super Micro Computer (NASDAQ:SMCI) Stock Falls 8.5% – Here’s Why

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price fell 8.5% during mid-day trading on Thursday. The stock traded as low as $25.81 and last traded at $27.08. Approximately 61,891,986 shares were traded during mid-day trading, an increase of 42% from the average daily volume of 43,678,414 shares. The stock had previously closed at $29.60.

Key Headlines Impacting Super Micro Computer

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

• Positive Sentiment: Supermicro reported fiscal Q1 2027 revenue of $19.95 billion, far above analyst expectations, and raised its sales outlook as demand for AI servers remained strong. One report also highlighted quarterly gross margin above the company’s guidance. Article: Super Micro: Major Plot Twist
• Positive Sentiment: New AI-infrastructure collaborations could reinforce Supermicro’s product appeal: its solution with IBM and NVIDIA is designed to improve inference performance, while a separate partnership with Smartbird will support managed enterprise AI clusters. Article: Supermicro Launches KV Cache Solution with IBM and NVIDIA Article: Smartbird Expands Enterprise AI Infrastructure Partner Network with Supermicro
• Positive Sentiment: Several analyst signals were supportive: Bank of America raised its price target and Rosenblatt reaffirmed a Buy rating, citing the company’s growth prospects. Article: BofA lifts Supermicro target Article: Rosenblatt Securities Reaffirms Buy Rating
• Neutral Sentiment: SMCI joined a broader rebound in AI-server stocks, recovering some ground after election-related selling. This may support the shares near term, though the move reflects sector sentiment rather than a new company-specific catalyst. Article: AI Server Stocks Rebound
• Negative Sentiment: Investors remain concerned that rapid sales growth may not translate into equally strong profitability or cash generation. Coverage points to margin pressure, cash strain, and Supermicro’s exposure to the neocloud market as risks. Article: SMCI Stock Sinks After Q1 Results Expose Cash Strain Article: Supermicro Stock Is Still Not a Buy
• Negative Sentiment: A report says CEO Charles Liang sold shares 28 days before promoting growth in AI inference, a development that could raise investor concerns about insider confidence. Article: Supermicro CEO Sold Shares Before Pitching AI Inference Growth

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. Citigroup reiterated a “neutral” rating and set a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a report on Thursday, October 8th. Stifel Nicolaus set a $42.00 price objective on shares of Super Micro Computer in a report on Wednesday, August 12th. Barclays set a $39.00 price objective on Super Micro Computer and gave the company an “equal weight” rating in a research report on Wednesday, August 12th. Zacks Research downgraded Super Micro Computer from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 12th. Finally, Wall Street Zen upgraded Super Micro Computer from a “hold” rating to a “buy” rating in a research note on Saturday, October 31st. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $43.08.

Super Micro Computer Stock Performance

The company has a market cap of $18.89 billion, a P/E ratio of 6.13, a P/E/G ratio of 0.48 and a beta of 2.17. 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 business has a fifty day simple moving average of $37.44 and a two-hundred day simple moving average of $32.66.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.53. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The business had revenue of $19.95 billion during the quarter, compared to the consensus estimate of $16.29 billion. During the same period in the previous year, the company posted $0.35 EPS. The business’s quarterly revenue was up 297.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Super Micro Computer, Inc. will post 4.17 EPS for the current year.

Insider Activity at Super Micro Computer

In other Super Micro Computer news, Director Chiu-Chu Liang sold 100,000 shares of the company’s stock in a transaction that occurred on 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 completion of the sale, the director directly owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The sale was disclosed in a filing 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, CEO Charles Liang sold 100,000 shares of the stock in a transaction that occurred on 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 transaction, the chief executive officer owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 400,000 shares of company stock valued at $16,442,000 over the last 90 days. 16.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Super Micro Computer

A number of institutional investors have recently bought and sold shares of SMCI. SLT Holdings LLC increased its position in Super Micro Computer by 3.0% in the third quarter. SLT Holdings LLC now owns 10,400 shares of the company’s stock worth $427,000 after buying an additional 300 shares in the last quarter. World Equity Group Inc. grew its stake in shares of Super Micro Computer by 3.8% during the 1st quarter. World Equity Group Inc. now owns 9,877 shares of the company’s stock valued at $225,000 after acquiring an additional 362 shares during the period. Quest 10 Wealth Builders Inc. grew its stake in shares of Super Micro Computer by 235.2% during the 3rd quarter. Quest 10 Wealth Builders Inc. now owns 600 shares of the company’s stock valued at $25,000 after acquiring an additional 421 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its stake in shares of Super Micro Computer by 0.5% during 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 acquiring an additional 564 shares during the period. Finally, MCF Advisors LLC increased its holdings in Super Micro Computer by 22.8% in the 2nd quarter. MCF Advisors LLC now owns 3,667 shares of the company’s stock worth $108,000 after acquiring an additional 680 shares in the last quarter. 84.06% of the stock is owned by institutional investors.

About Super Micro Computer

Super Micro Computer, Inc designs and sells server and storage systems, networking equipment, and related software and services. Its offerings include systems for data centers, cloud computing, enterprise applications, high-performance computing, artificial intelligence, and edge computing.

The company emphasizes application-optimized solutions, including integrated rack-scale systems that combine computing, storage, networking, and management tools. It also provides system configuration, deployment, and support services.

Founded in 1993 and headquartered in San Jose, California, Super Micro serves customers around the world.