California Public Employees Retirement System Cuts Position in Super Micro Computer, Inc. $SMCI

Key Points

• CalPERS reduced its Super Micro Computer stake by 3.6% in the first quarter, selling 26,070 shares and ending with 705,957 shares worth about $16.1 million. Despite the trim, institutional ownership in SMCI remains high at roughly 84%.
• Super Micro’s recent update was notably upbeat, with gross margin guidance raised to 15%–17% from 8.2%–8.4% and more than $60 billion in new orders plus a record backlog. Those developments helped fuel a sharp rally in the stock and reinforced demand for its AI server products.
• Analysts remain mixed on the name even after the stronger outlook, with several price targets cut or held and the consensus rating still at “Hold.” The company also reported better-than-expected EPS in its latest quarter, but revenue came in below estimates, keeping some caution in place.

California Public Employees Retirement System trimmed its position in shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Free Report) by 3.6% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 705,957 shares of the company's stock after selling 26,070 shares during the period. California Public Employees Retirement System owned approximately 0.12% of Super Micro Computer worth $16,075,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Allspring Global Investments Holdings LLC grew its stake in shares of Super Micro Computer by 5.7% in the first quarter. Allspring Global Investments Holdings LLC now owns 22,690 shares of the company's stock valued at $511,000 after buying an additional 1,229 shares in the last quarter. Independent Financial Group LLC acquired a new position in Super Micro Computer during the 1st quarter worth about $273,000. Aware Super Pty Ltd as trustee of Aware Super acquired a new position in Super Micro Computer during the 1st quarter worth about $408,000. Harel Insurance Investments & Financial Services Ltd. acquired a new position in Super Micro Computer during the 1st quarter worth about $228,000. Finally, AMG National Trust Bank purchased a new position in Super Micro Computer during the 1st quarter valued at about $567,000. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Super Micro Computer

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

• Positive Sentiment: Super Micro said gross margin is now expected to be 15% to 17%, far above its prior 8.2% to 8.4% outlook, easing investor concerns about profitability and helping explain the stock’s surge. Super Micro Computer stock surges 20% on margin recovery
• Positive Sentiment: The company disclosed more than $60 billion in new orders in the quarter and a record backlog, reinforcing the view that demand for its AI servers remains very strong. Supermicro Introduces New Server Portfolio with 6th Gen AMD EPYC CPUs
• Positive Sentiment: Super Micro also introduced a new H15 server portfolio powered by 6th Gen AMD EPYC CPUs and optimized for next-generation AI workloads, which supports its growth narrative in AI infrastructure. Supermicro Introduces New Server Portfolio
• Neutral Sentiment: Several analysts raised price targets or upgraded the stock, while others stayed cautious, suggesting expectations remain mixed despite the stronger update.
• Negative Sentiment: Revenue is still expected near the low end of guidance, and some reports warned that fulfilling the huge backlog may require additional financing or capital raises, tempering the bullish reaction.
• Negative Sentiment: Northland and Mizuho kept a more restrained view on the name, with one cutting near-term EPS estimates and another lowering its price target, showing concerns have not fully disappeared.

Analysts Set New Price Targets

Several equities analysts have weighed in on SMCI shares. CJS Securities raised Super Micro Computer from a "market underperform" rating to a "market perform" rating in a research report on Wednesday, May 6th. Barclays increased their price target on shares of Super Micro Computer from $34.00 to $38.00 and gave the stock an "equal weight" rating in a research report on Wednesday. Wedbush lowered their price objective on shares of Super Micro Computer from $42.00 to $34.00 and set a "neutral" rating for the company in a research note on Wednesday, May 6th. Mizuho dropped 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 report on Thursday. Finally, Northland Securities set a $36.00 target price on shares of Super Micro Computer in a research note on Wednesday. Four investment analysts have rated the stock with a Buy rating, twelve have assigned 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 $39.21.

Super Micro Computer Trading Up 2.1%

NASDAQ:SMCI opened at $31.20 on Friday. Super Micro Computer, Inc. has a 12-month low of $19.48 and a 12-month high of $62.36. The firm has a market cap of $18.76 billion, a PE ratio of 16.51, a price-to-earnings-growth ratio of 0.40 and a beta of 1.94. The company has a current ratio of 2.66, a quick ratio of 1.29 and a debt-to-equity ratio of 0.88. The stock has a fifty day moving average price of $32.70 and a 200 day moving average price of $30.52.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.84 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.21. The company had revenue of $10.24 billion for the quarter, compared to the consensus estimate of $12.39 billion. Super Micro Computer had a return on equity of 17.49% and a net margin of 3.70%.Super Micro Computer's revenue was up 122.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.31 EPS. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. Sell-side analysts anticipate that Super Micro Computer, Inc. will post 2.11 earnings per share for the current fiscal year.

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.

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