Super Micro Computer (NASDAQ:SMCI) Given New $40.00 Price Target at Rosenblatt Securities

Key Points

• Rosenblatt Securities raised its price target on Super Micro Computer to $40 (from $32) and kept a buy rating, implying about 15.5% upside, while the Street consensus remains a Hold with an average target of $37.43.
• Shares surged ~24.4% after Supermicro reported Q3 EPS of $0.84 vs. $0.63 expected and a margin rebound, but revenue missed at $10.24B vs. $12.39B, spurring heavy volume and notable institutional buying.
• Legal and regulatory risk is a major overhang — multiple class‑action filings, unresolved export‑control/indictment allegations (including disputed sales) and recent insider selling could cap upside.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) had its price target boosted by equities research analysts at Rosenblatt Securities from $32.00 to $40.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Rosenblatt Securities' target price would suggest a potential upside of 15.51% from the company's current price.

SMCI has been the subject of a number of other research reports. The Goldman Sachs Group reiterated a "sell" rating on shares of Super Micro Computer in a research report on Wednesday. Wedbush reduced their price objective on Super Micro Computer from $42.00 to $34.00 and set a "neutral" rating for the company in a research report on Wednesday. Needham & Company LLC reiterated a "buy" rating and set a $40.00 price objective on shares of Super Micro Computer in a research report on Wednesday. Wall Street Zen upgraded Super Micro Computer from a "sell" rating to a "hold" rating in a research report on Sunday, February 15th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Super Micro Computer in a report on Friday, March 27th. Four investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $37.43.

Super Micro Computer Stock Up 24.4%

Shares of SMCI stock traded up $6.80 during mid-day trading on Wednesday, hitting $34.63. The company's stock had a trading volume of 126,861,889 shares, compared to its average volume of 36,699,730. Super Micro Computer has a 52-week low of $19.48 and a 52-week high of $62.36. The business has a 50-day moving average price of $27.57 and a 200 day moving average price of $32.57. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.01 and a current ratio of 1.70. The stock has a market cap of $20.74 billion, a price-to-earnings ratio of 25.84, a PEG ratio of 0.52 and a beta of 1.69.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted 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. Super Micro Computer had a return on equity of 13.22% and a net margin of 3.11%.The firm had revenue of $10.24 billion during the quarter, compared to analysts' expectations of $12.39 billion. During the same quarter in the previous year, the business earned $0.31 earnings per share. The company's revenue 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. Research analysts predict that Super Micro Computer will post 1.9 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SMCI. Norges Bank bought a new position in shares of Super Micro Computer during the 4th quarter valued at approximately $136,569,000. Clear Street Group Inc. bought a new position in shares of Super Micro Computer during the 3rd quarter valued at approximately $147,631,000. Vanguard Group Inc. grew its stake in shares of Super Micro Computer by 4.1% during the 3rd quarter. Vanguard Group Inc. now owns 68,848,777 shares of the company's stock valued at $3,300,610,000 after acquiring an additional 2,695,829 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Super Micro Computer by 833.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,939,536 shares of the company's stock worth $140,882,000 after buying an additional 2,624,746 shares during the period. Finally, Invesco Ltd. increased its stake in Super Micro Computer by 21.2% in the 4th quarter. Invesco Ltd. now owns 9,953,780 shares of the company's stock worth $291,347,000 after buying an additional 1,738,749 shares in the last quarter. 84.06% of the stock is currently owned by institutional investors.

Super Micro Computer News Summary

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

• Positive Sentiment: Earnings beat, margin rebound and strong forward guide — SMCI reported Q3 EPS well above estimates, non‑GAAP gross margin rose to ~10%, and management guided Q4 revenue and EPS above consensus, shifting focus to profitability and AI-server demand. Q3 Results
• Positive Sentiment: Wall Street reaction and analyst notes supportive — several outlets and analysts highlighted the margin recovery and raised/ reaffirmed targets (Needham reaffirmed buy/ $40 TP), helping momentum. Analyst Reaction
• Positive Sentiment: Heavy bullish options/retail interest — abnormal call‑option volume and large option trades amplified upside as traders bet on a rebound. Options Flow
• Neutral Sentiment: Revenue missed estimates — Q3 sales (~$10.2B) fell short of Street forecasts even though they were +123% YoY; investors are weighing topline timing vs. margin strength. Revenue Miss
• Neutral Sentiment: Mixed analyst moves — a few firms adjusted price targets (JPMorgan trimmed/neutral at $32, Wedbush cut to $34) showing caution despite the beat. Analyst Targets
• Negative Sentiment: Multiple securities class-action filings and lead‑plaintiff deadlines — several law firms issued investor alerts and lawsuits alleging misrepresentations covering April 30, 2024–March 19, 2026; legal risk remains a key overhang. Class Action Notices
• Negative Sentiment: Allegations tied to export control/indictment remain unresolved — prior federal indictment and investor alerts allege diverted/illegal sales (reported ~$2.5B of disputed sales), creating regulatory and reputational risk that could cap gains. Investor Alert on Indictment
• Negative Sentiment: Insider sales and institutional churn — recent filings show insider selling and large institutional position changes, which could signal profit taking or cautious reallocations as legal uncertainty persists. Insider & Institutional Activity

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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