Super Micro Computer (NASDAQ:SMCI) Stock Price Down 1.9% - Here's Why

Key Points

• SMCI shares fell 1.9% to $35.09 amid broader pressure on AI-hardware stocks, following analyst downgrades of Dell and Hewlett Packard Enterprise and uncertainty about enterprise AI-spending timing.
• Super Micro continues to benefit from strong AI-server demand, including deployments using Nvidia Blackwell chips. Its latest quarter delivered an earnings beat and 93.2% year-over-year revenue growth, though revenue missed estimates.
• Investor sentiment remains mixed: Mark Long was appointed CFO, Zacks downgraded the stock to Hold, and insiders recently sold shares. Analysts have a consensus Hold rating with a $43.07 target price, versus the current price near $35.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) were down 1.9% during mid-day trading on Thursday. The company traded as low as $32.38 and last traded at $35.09. 36,517,000 shares changed hands during mid-day trading, a decline of 16% from the average session volume of 43,584,098 shares. The stock had previously closed at $35.78.

Super Micro Computer News Roundup

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

• Positive Sentiment: AI infrastructure demand remains a growth catalyst. Digi Power X is deploying Supermicro servers equipped with Nvidia’s latest Blackwell chips for its enterprise AI-computing platform, providing a customer example for Supermicro’s AI-server business. Digi Power X pairs owned power infrastructure with Supermicro GPUs to serve enterprise AI customers
• Positive Sentiment: Low valuation may attract bargain hunters. SMCI trades at roughly 10 times earnings, well below the S&P 500 median. Its latest quarter also showed strong year-over-year revenue growth and an earnings beat, although revenue fell short of expectations. Is SMCI Stock A Real Bargain?
• Neutral Sentiment: Mark Long was appointed chief financial officer effective immediately. Long, formerly Western Digital’s CFO, will report to CEO Charles Liang. The leadership change could strengthen financial oversight, but the abrupt transition has added uncertainty for investors. Super Micro appoints Mark Long as chief financial officer
• Negative Sentiment: AI-hardware stocks are facing sector-wide pressure. Barclays downgraded Dell and Hewlett Packard Enterprise to Hold, citing uncertainty over the timing of enterprise AI spending. The resulting retreat in server makers has pressured SMCI as well. Dell Falls 8%, Hewlett Packard Enterprise Drops 4% as Barclays Cuts Both to Hold
• Negative Sentiment: Analyst and insider signals have weakened sentiment. Zacks Research moved SMCI from Strong Buy to Hold, while reported insider selling contributed to additional selling pressure. Super Micro Computer Stock Falls on Insider Selling

Wall Street Analyst Weigh In

SMCI has been the subject of a number of research analyst reports. Weiss Ratings reiterated a "hold (c)" rating on shares of Super Micro Computer in a report on Monday, September 21st. The Goldman Sachs Group reissued a "sell" rating and set a $34.00 target price (up from $30.00) on shares of Super Micro Computer in a research note on Wednesday, August 12th. Rosenblatt Securities raised their price target on shares of Super Micro Computer from $45.00 to $51.00 and gave the company a "buy" rating in a research report on Wednesday, August 12th. Wedbush increased their target price on Super Micro Computer from $34.00 to $40.00 and gave the company a "neutral" rating in a report on Wednesday, August 12th. Finally, Barclays set a $39.00 price target on Super Micro Computer and gave the stock an "equal weight" rating in a 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 stock. According to data from MarketBeat, Super Micro Computer has a consensus rating of "Hold" and a consensus price target of $43.07.

Super Micro Computer Stock Down 1.9%

The business's fifty day moving average price is $38.71 and its 200 day moving average price is $33.34. The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of $23.05 billion, a price-to-earnings ratio of 10.97, a PEG ratio of 0.75 and a beta of 2.02.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The firm had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.60 billion. During the same quarter last year, the company posted $0.31 earnings per share. The business's revenue was up 93.2% on a year-over-year basis. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, equities analysts expect that Super Micro Computer, Inc. will post 3.94 EPS for the current year.

Insider Activity

In other news, Director Chiu-Chu Liang sold 100,000 shares of the business'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 director directly 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 sale was disclosed in a legal filing with the SEC, which is available through this link. 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 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 transaction, the chief executive officer directly owned 337,506 shares of the company's stock, valued at $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 400,000 shares of company stock worth $16,442,000. Insiders own 16.10% of the company's stock.

Hedge Funds Weigh In On Super Micro Computer

Several institutional investors and hedge funds have recently added to or reduced their stakes in SMCI. Dimensional Fund Advisors LP increased its holdings in Super Micro Computer by 2.8% in the first quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company's stock valued at $92,872,000 after buying an additional 111,388 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake 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. Swiss National Bank boosted its stake in shares of Super Micro Computer by 7.6% during the 1st quarter. Swiss National Bank now owns 1,576,800 shares of the company's stock worth $35,904,000 after acquiring an additional 111,100 shares in the last quarter. Hsbc Holdings PLC boosted its stake in shares of Super Micro Computer by 13.7% during the 4th quarter. Hsbc Holdings PLC now owns 1,134,891 shares of the company's stock worth $33,203,000 after acquiring an additional 137,180 shares in the last quarter. Finally, Principal Financial Group Inc. grew its holdings in shares of Super Micro Computer by 1.3% in the 1st quarter. Principal Financial Group Inc. now owns 565,746 shares of the company's stock worth $12,882,000 after acquiring an additional 7,373 shares during the period. Institutional investors and hedge funds own 84.06% of the company's stock.

About Super Micro Computer

Super Micro Computer, Inc develops and sells application-optimized server and storage systems for data centers, cloud computing, enterprise IT, artificial intelligence, and other demanding computing environments. The company offers complete computing platforms as well as modular components, allowing customers to configure systems for specific performance, power, and workload requirements.

Its product portfolio includes server and storage systems, workstations, networking equipment, rack-scale solutions, GPU and AI systems, and related software and services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.