Super Micro Computer, Inc. (NASDAQ:SMCI) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts hold a cautious view: Eighteen brokerages give Super Micro Computer a consensus “Hold” rating, with 12 holds, four buys and two sells. The average 12-month price target is $39.21, although several firms recently lowered targets to about $34.
• Quarterly results were mixed: Super Micro reported adjusted EPS of $0.84, beating the $0.63 consensus, while revenue of $10.24 billion fell short of the $12.39 billion estimate. Revenue nonetheless increased 122.7% year over year, but the company’s 3.70% net margin highlights profitability concerns.
• Demand potential is balanced by execution and regulatory risks: Reported AI-server orders exceeding $60 billion suggest strong demand, but questions about backlog conversion, thin margins and an investigation into alleged exports to China could weigh on investor sentiment. Institutional investors own 84.06% of the stock.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) have been assigned a consensus rating of "Hold" from the eighteen brokerages that are presently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, twelve have assigned a hold rating and four have assigned a buy rating to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $39.2143.

A number of equities analysts recently commented on the company. Mizuho decreased their target price on Super Micro Computer from $44.00 to $34.00 and set a "neutral" rating on the stock in a report on Thursday, July 23rd. Northland Securities set a $36.00 price target on Super Micro Computer in a report on Wednesday, July 22nd. CJS Securities raised Super Micro Computer from a "market underperform" rating to a "market perform" rating in a research note on Wednesday, May 6th. The Goldman Sachs Group reaffirmed a "sell" rating on shares of Super Micro Computer in a research report on Wednesday, May 6th. Finally, Wedbush cut their price objective on 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.

Super Micro Computer Stock Performance

Shares of SMCI stock opened at $25.70 on Thursday. The company's 50-day moving average is $32.46 and its 200 day moving average is $30.48. Super Micro Computer has a one year low of $19.48 and a one year high of $62.36. 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 company has a market capitalization of $15.46 billion, a price-to-earnings ratio of 13.60, a price-to-earnings-growth ratio of 0.34 and a beta of 1.94.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.84 EPS for the quarter, topping the consensus estimate 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 company had revenue of $10.24 billion during the quarter, compared to the consensus estimate of $12.39 billion. During the same period last year, the company earned $0.31 EPS. Super Micro Computer's revenue for the quarter was up 122.7% on a year-over-year basis. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. Sell-side analysts expect that Super Micro Computer will post 2.1 EPS for the current fiscal year.

Institutional Investors Weigh In On Super Micro Computer

A number of institutional investors have recently added to or reduced their stakes in SMCI. Geode Capital Management LLC increased its position in Super Micro Computer by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 13,808,499 shares of the company's stock worth $402,627,000 after purchasing an additional 41,314 shares during the last quarter. Invesco Ltd. boosted its position in Super Micro Computer by 21.2% in 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. Disciplined Growth Investors Inc. MN grew its stake in Super Micro Computer by 16.5% in the second quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company's stock worth $476,905,000 after purchasing an additional 1,381,046 shares in the last quarter. Norges Bank bought a new position in shares of Super Micro Computer during the 4th quarter worth $136,569,000. Finally, Dimensional Fund Advisors LP increased its position in Super Micro Computer by 2.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company's stock valued at $92,872,000 after purchasing an additional 111,388 shares during the period. 84.06% of the stock is owned by hedge funds and other institutional investors.

Super Micro Computer News Roundup

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

• Positive Sentiment: Super Micro reportedly booked more than $60 billion in orders during the latest quarter—more than three times its market value—underscoring potentially strong demand for its AI server systems and suggesting substantial future growth if the orders convert into shipments and revenue. Super Micro Computer Booked More Than $60 Billion of Orders Last Quarter
• Neutral Sentiment: Broader enthusiasm for AI infrastructure and recent gains in leveraged AI-related investments may support investor interest, but commentary urging highly leveraged AI investors to reduce exposure highlights a more cautious market environment for volatile companies such as SMCI. Jim Cramer Tells Leveraged AI Investors Sell It
• Negative Sentiment: Taiwanese prosecutors detained an Nvidia employee in an investigation into alleged illegal exports of Super Micro AI servers to China. The probe raises potential legal, compliance, reputational and supply-chain risks for Super Micro, while Nvidia’s involvement increases investor attention. Taiwan Detains Nvidia Employee in Super Micro Probe
• Negative Sentiment: Critical analysis questions whether the reported backlog is a “phantom backlog” and argues that strong guidance does not fully offset concerns about execution, order visibility and the company’s ability to turn demand into profitable sales. Super Micro: A Phantom Backlog and Unearned Hype
• Negative Sentiment: Although Super Micro recently exceeded quarterly EPS expectations, revenue came in below consensus estimates. That miss, combined with thin net margins and regulatory uncertainty, is encouraging investors to focus on execution risks rather than the headline order total.

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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