Super Micro Computer (NASDAQ:SMCI) Stock Price Down 3.1% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) dropped 3.1% during trading on Thursday . The stock traded as low as $29.33 and last traded at $29.38. 26,383,914 shares were traded during mid-day trading, a decline of 40% from the average daily volume of 43,641,363 shares. The stock had previously closed at $30.32.

Key Stories Impacting Super Micro Computer

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

• Positive Sentiment: Record backlog supports future growth. Supermicro is highlighted as a beneficiary of surging AI infrastructure demand, with accumulated orders for AI servers, racks, cooling, networking, and related data-center equipment. This suggests solid demand visibility for the company’s server business. Why Is Super Micro Watching Record Backlog?
• Positive Sentiment: New storage and AI infrastructure initiatives reinforce Supermicro’s ecosystem strategy. The company announced its seventh annual Open Storage Summit, featuring 38 experts from 21 technology partners—including AMD, Intel, IBM, Western Digital, and others—focused on AI inference, agentic AI, cloud storage, and scalable enterprise deployments. The event could strengthen partner relationships and support demand for Supermicro’s integrated systems, although it is not an immediate revenue catalyst. Supermicro Open Storage Summit Announcement
• Positive Sentiment: Strong results from Western Digital may validate storage demand. Western Digital reported quarterly earnings and revenue above analyst expectations, potentially supporting the broader AI data-center storage investment thesis and benefiting suppliers such as Supermicro. Western Digital Q4 Earnings
• Neutral Sentiment: Investors are questioning whether the recent AI-server rally fully reflects growth prospects. Supermicro’s new high-density AI racks and H15 servers, along with relationships with Nvidia, AMD, and Intel, have improved its growth outlook. However, the stock’s recent rebound has increased concerns that expectations may already be elevated. Is Super Micro Fully Valued?
• Negative Sentiment: Broad AI and semiconductor selling is weighing on SMCI. Elon Musk’s statement that his companies would use Nvidia chips exclusively triggered a sharp decline in several chip and AI names. Although Nvidia benefited, the move raised concerns about competitive positioning and reduced demand for alternative accelerator suppliers, contributing to pressure across the AI hardware group. AI and Chip Stocks Drop After Musk Comments
• Negative Sentiment: Recent trading weakness reflects risk reduction after a strong run. SMCI declined more sharply than the broader market in the latest session, indicating that investors may be taking profits and reassessing the stock’s near-term valuation despite its long-term AI opportunity. Super Micro Suffers a Larger Drop Than the General Market

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. The Goldman Sachs Group reissued a “sell” rating on shares of Super Micro Computer in a report on Wednesday, May 6th. Mizuho reduced their price objective on shares of Super Micro Computer from $44.00 to $34.00 and set a “neutral” rating for the company in a research note on Thursday, July 23rd. Needham & Company LLC increased their target price on shares of Super Micro Computer from $40.00 to $46.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. Northland Securities set a $36.00 price target on shares of Super Micro Computer in a report on Wednesday, July 22nd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Super Micro Computer in a research report on Wednesday, June 24th. Four investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $39.21.

Super Micro Computer Stock Performance

The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.29 and a current ratio of 2.66. The stock has a market cap of $17.67 billion, a PE ratio of 15.54, a PEG ratio of 0.38 and a beta of 1.95. The company’s 50-day moving average price is $31.80 and its two-hundred day moving average price is $30.48.

Super Micro Computer (NASDAQ:SMCI) last released its earnings results on Tuesday, May 5th. The company reported $0.84 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.21. Super Micro Computer had a return on equity of 17.49% and a net margin of 3.70%.The business had revenue of $10.24 billion for the quarter, compared to analysts’ expectations of $12.39 billion. During the same quarter in the prior year, the firm earned $0.31 earnings per share. The firm’s revenue was up 122.7% on a year-over-year basis. On average, equities research analysts forecast that Super Micro Computer, Inc. will post 2.1 EPS for the current year.

Hedge Funds Weigh In On Super Micro Computer

A number of large investors have recently modified their holdings of the company. Norges Bank bought a new position in shares of Super Micro Computer in the fourth quarter worth approximately $136,569,000. Assenagon Asset Management S.A. raised its holdings in 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 valued at $63,789,000 after buying an additional 2,058,588 shares during the last quarter. Invesco Ltd. boosted its position in Super Micro Computer by 21.2% during the 4th quarter. Invesco Ltd. now owns 9,953,780 shares of the company’s stock valued at $291,347,000 after buying an additional 1,738,749 shares during the period. Amundi boosted its position in Super Micro Computer by 188.8% during the 4th quarter. Amundi now owns 2,421,891 shares of the company’s stock valued at $70,889,000 after buying an additional 1,583,229 shares during the period. Finally, Disciplined Growth Investors Inc. MN grew its holdings in Super Micro Computer by 16.5% in the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company’s stock worth $476,905,000 after acquiring an additional 1,381,046 shares during the last quarter. 84.06% of the stock is owned by hedge funds and other institutional investors.

Super Micro Computer Company Profile

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.