Super Micro Computer (NASDAQ:SMCI) Given Buy Rating at Needham & Company LLC

Key Points

• Needham reiterated its Buy rating on Super Micro Computer and set a $46 price target, implying 45.57% upside from the prior close.
• Analyst sentiment remains mixed: four analysts rate the stock Buy, twelve Hold and two Sell, producing a consensus Hold rating and $39.71 average price target.
• Super Micro reported a strong earnings beat, with quarterly EPS of $1.70 versus the $0.92 consensus and revenue up 93.2% year over year to $11.12 billion, though revenue fell short of estimates and margin concerns remain.

Super Micro Computer (NASDAQ:SMCI - Get Free Report)'s stock had its "buy" rating reiterated by research analysts at Needham & Company LLC in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $46.00 price objective on the stock. Needham & Company LLC's price target would indicate a potential upside of 45.57% from the stock's previous close.

A number of other equities research analysts also recently issued reports on the stock. Wolfe Research began coverage on shares of Super Micro Computer in a research note on Thursday, June 11th. They set a "peer perform" rating on the stock. Bank of America reiterated an "underperform" rating on shares of Super Micro Computer in a research report on Wednesday. The Goldman Sachs Group restated a "sell" rating on shares of Super Micro Computer in a research report on Wednesday. Rosenblatt Securities raised their target price on Super Micro Computer from $45.00 to $51.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Northland Securities set a $36.00 price target on Super Micro Computer in a report on Wednesday, July 22nd. Four investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $39.71.

Super Micro Computer Price Performance

Shares of NASDAQ SMCI opened at $31.60 on Wednesday. The business has a fifty day moving average price of $30.58 and a two-hundred day moving average price of $30.44. The stock has a market capitalization of $19.00 billion, a PE ratio of 16.72, a P/E/G ratio of 0.37 and a beta of 1.95. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.66 and a quick ratio of 1.29. Super Micro Computer has a fifty-two week low of $19.48 and a fifty-two week high of $58.78.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.78. Super Micro Computer had a return on equity of 17.49% and a net margin of 3.70%.The company had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.60 billion. During the same period in the prior year, the firm posted $0.31 EPS. Super Micro Computer's quarterly 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. As a group, equities analysts predict that Super Micro Computer will post 2.1 earnings per share for the current fiscal year.

Institutional Trading of Super Micro Computer

A number of hedge funds have recently added to or reduced their stakes in SMCI. Flagship Harbor Advisors LLC bought a new stake in shares of Super Micro Computer during the fourth quarter worth $25,000. Elyxium Wealth LLC acquired a new position in shares of Super Micro Computer during the fourth quarter worth $26,000. Arax Advisory Partners bought a new position in shares of Super Micro Computer in the 4th quarter valued at $28,000. SHP Wealth Management bought a new position in shares of Super Micro Computer in the 4th quarter valued at $29,000. Finally, Concord Wealth Partners boosted its holdings in shares of Super Micro Computer by 2,564.1% during the 4th quarter. Concord Wealth Partners now owns 1,039 shares of the company's stock valued at $30,000 after acquiring an additional 1,000 shares in the last quarter. Institutional investors and hedge funds own 84.06% of the company's stock.

Key Stories Impacting Super Micro Computer

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

• Positive Sentiment: Strong earnings beat: Fiscal fourth-quarter adjusted EPS was $1.70, well above the $0.92 consensus estimate and up from $0.41 a year earlier. Quarterly profit reached $1.17 billion, while revenue rose 93.2% year over year to $11.12 billion. Super Micro Stock Surges as Earnings Smash Expectations and Revive AI Hope
• Positive Sentiment: Upbeat forward guidance: Management forecast fiscal 2027 revenue of $65 billion to $72 billion, substantially above the $53.1 billion analyst estimate. First-quarter fiscal 2027 revenue guidance of $14.5 billion to $15.5 billion also exceeded the $12 billion consensus, while EPS guidance of $1.01 to $1.10 topped the $0.72 estimate. Super Micro forecasts upbeat annual revenue
• Positive Sentiment: AI demand outlook strengthened: Super Micro’s forecast, alongside an upbeat outlook from CoreWeave, supported the view that demand for AI computing capacity and infrastructure could remain strong. CoreWeave, Super Micro climb on signs of sustained AI buildout
• Neutral Sentiment: Revenue narrowly missed estimates: Reported revenue of $11.12 billion came in below the $11.60 billion consensus, despite the substantial year-over-year growth.
• Negative Sentiment: Margin and execution concerns remain: Analysts and market commentary continue to focus on whether Super Micro can sustain improved gross margins—reported at approximately 17.6%—as it scales rapidly. The company’s relatively low net margin of 3.7% leaves limited room for operational missteps. Supermicro stock is surging, but one number should still worry 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.

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