Investors Purchase High Volume of Super Micro Computer Call Options (NASDAQ:SMCI)

Key Points

• Unusual options activity: Investors bought 431,049 SMCI call options on Thursday, about 60% above the stock’s typical daily call volume, suggesting bullish speculation on a rebound.
• Stock and earnings backdrop: Super Micro Computer shares rose 9.2% to $31.97 amid very heavy trading, after the company recently beat EPS estimates but missed revenue expectations in its latest quarterly report.
• Mixed Wall Street view: Analysts remain cautious overall, with a consensus Hold rating and average price target of $39, as upbeat AI demand and growth prospects are offset by concerns about margins, dilution, and regulatory/legal risks.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) was the recipient of some unusual options trading on Thursday. Investors bought 431,049 call options on the stock. This represents an increase of 60% compared to the typical daily volume of 268,885 call options.

Analysts Set New Price Targets

SMCI has been the subject of several research reports. Needham & Company LLC reaffirmed a "buy" rating and issued a $40.00 target price on shares of Super Micro Computer in a research note on Wednesday, May 6th. Wall Street Zen upgraded shares of Super Micro Computer from a "sell" rating to a "hold" rating in a research report on Sunday, February 15th. The Goldman Sachs Group reissued a "sell" rating on shares of Super Micro Computer in a research note on Wednesday, May 6th. Mizuho upped their price target on shares of Super Micro Computer from $36.00 to $44.00 and gave the company a "neutral" rating in a research report on Monday, June 1st. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $45.00 price objective on shares of Super Micro Computer in a research note on Wednesday, May 6th. Four investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Super Micro Computer currently has a consensus rating of "Hold" and an average target price of $39.00.

Super Micro Computer Stock Up 9.2%

Shares of SMCI traded up $2.70 on Thursday, reaching $31.97. The stock had a trading volume of 250,278,611 shares, compared to its average volume of 41,392,266. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.29 and a current ratio of 2.66. Super Micro Computer has a 12-month low of $19.48 and a 12-month high of $62.36. The firm has a market capitalization of $19.23 billion, a price-to-earnings ratio of 16.92, a price-to-earnings-growth ratio of 0.68 and a beta of 1.87. The company has a 50-day simple moving average of $31.99 and a 200-day simple moving average of $31.22.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.63 by $0.21. The business had revenue of $10.24 billion during 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%.The firm's quarterly revenue was up 122.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.31 earnings per share. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. Sell-side analysts predict that Super Micro Computer will post 2.12 EPS for the current year.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Unusually heavy call buying suggests some traders are positioning for a rebound in SMCI, with call volume running well above normal as investors bet the recent weakness may be overdone.
• Positive Sentiment: SMCI says demand for its AI infrastructure remains very strong, with a large order backlog that could support future revenue growth if it can secure enough components and execute on deliveries.
• Neutral Sentiment: Wolfe Research initiated coverage with a Peer Perform rating, noting SMCI is well positioned to benefit from AI spending but faces margin, operational, legal, and regulatory risks that could limit upside. Article Title
• Negative Sentiment: Several reports focused on the company’s financing package, which includes common stock and convertible preferred-related offerings, reinforcing investor worries about dilution and the cost of funding growth. Article Title
• Negative Sentiment: Analyst and commentary pieces also highlighted reputational concerns and share dilution, contributing to the view that the market is reacting negatively to the way SMCI is financing its AI expansion. Article Title

Hedge Funds Weigh In On Super Micro Computer

A number of hedge funds have recently added to or reduced their stakes in the company. CI Investments Inc. increased its holdings in shares of Super Micro Computer by 12.1% in the 3rd quarter. CI Investments Inc. now owns 3,001 shares of the company's stock worth $144,000 after buying an additional 324 shares during the last quarter. MCF Advisors LLC grew its position in Super Micro Computer by 9.6% in the fourth quarter. MCF Advisors LLC now owns 3,696 shares of the company's stock worth $108,000 after acquiring an additional 325 shares in the last quarter. CIBC Private Wealth Group LLC grew its position in Super Micro Computer by 11.8% in the third quarter. CIBC Private Wealth Group LLC now owns 3,206 shares of the company's stock worth $154,000 after acquiring an additional 339 shares in the last quarter. Murphy & Mullick Capital Management Corp increased its stake in Super Micro Computer by 42.1% during the third quarter. Murphy & Mullick Capital Management Corp now owns 1,165 shares of the company's stock worth $57,000 after acquiring an additional 345 shares during the last quarter. Finally, City State Bank increased its stake in Super Micro Computer by 4.9% during the fourth quarter. City State Bank now owns 7,500 shares of the company's stock worth $220,000 after acquiring an additional 350 shares during the last quarter. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

About Super Micro Computer

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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