Super Micro Computer (NASDAQ:SMCI) Shares Down 3.5% Following Analyst Downgrade

Key Points

• Super Micro Computer shares fell 3.5% after Mizuho cut its price target from $44 to $34 while maintaining a neutral rating. The stock traded as low as $29.28 on unusually heavy volume.
• Despite the pullback, recent news around the company has been largely positive, including preliminary fiscal Q4 gross margin guidance of 15%–17% and more than $60 billion in new orders/backlog tied to AI server demand.
• Analyst views remain mixed but broadly cautious: the stock now has a consensus Hold rating and an average target price of $39.21, with several firms recently adjusting targets or reiterating neutral/hold opinions.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) traded down 3.5% during trading on Friday after Mizuho lowered their price target on the stock from $44.00 to $34.00. Mizuho currently has a neutral rating on the stock. Super Micro Computer traded as low as $29.28 and last traded at $30.10. 49,058,910 shares changed hands during trading, an increase of 11% from the average session volume of 44,087,207 shares. The stock had previously closed at $31.20.

Several other research firms have also commented on SMCI. JPMorgan Chase & Co. increased their target price on shares of Super Micro Computer from $28.00 to $32.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Weiss Ratings reissued a "hold (c)" rating on shares of Super Micro Computer in a research note on Wednesday, June 24th. The Goldman Sachs Group restated a "sell" rating on shares of Super Micro Computer in a research report on Wednesday, May 6th. Citigroup reaffirmed a "neutral" rating and set a $33.00 price objective (up from $31.00) on shares of Super Micro Computer in a research note on Monday, July 13th. Finally, Barclays lifted their price objective on Super Micro Computer from $34.00 to $38.00 and gave the stock an "equal weight" rating in a report on Wednesday. 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, the stock presently has a consensus rating of "Hold" and a consensus target price of $39.21.

Super Micro Computer News Summary

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

• Positive Sentiment: Super Micro said its preliminary fiscal Q4 gross margin is expected to be 15%–17%, far above prior guidance, signaling better pricing and operating leverage. Article Title
• Positive Sentiment: The company reported more than $60 billion in new orders/backlog, reinforcing demand for its AI server and infrastructure products. Article Title
• Positive Sentiment: Super Micro unveiled a new H15 server lineup using 6th Gen AMD EPYC 9006 CPUs, with 1.7x better performance and broader support for AI and high-performance workloads. Article Title
• Positive Sentiment: Analysts at Northland Securities raised near-term and FY2027 earnings estimates, and several other firms lifted price targets or turned more constructive on the stock. Article Title
• Neutral Sentiment: Some commentary notes that revenue could still land near the low end of guidance, so investors may want to see confirmation that margin gains are sustainable in the next earnings report.
• Negative Sentiment: Mizuho cut its price target to $34 and kept a neutral rating, reflecting continued caution despite the recent rebound. Article Title

Hedge Funds Weigh In On Super Micro Computer

A number of hedge funds have recently modified their holdings of the company. Trust Asset Management LLC purchased a new stake in shares of Super Micro Computer during the second quarter worth about $164,000. Tema ETFs LLC grew its stake in shares of Super Micro Computer by 10.5% in the second quarter. Tema ETFs LLC now owns 10,663 shares of the company's stock worth $313,000 after purchasing an additional 1,015 shares during the last quarter. Redhawk Wealth Advisors Inc. purchased a new position in Super Micro Computer during the 2nd quarter valued at about $253,000. Contravisory Investment Management Inc. purchased a new position in Super Micro Computer during the 2nd quarter valued at about $49,000. Finally, World Equity Group Inc. raised its position in Super Micro Computer by 21.3% during the 2nd quarter. World Equity Group Inc. now owns 11,977 shares of the company's stock valued at $351,000 after purchasing an additional 2,100 shares during the last quarter. Hedge funds and other institutional investors own 84.06% of the company's stock.

Super Micro Computer Price Performance

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 business has a 50-day simple moving average of $32.70 and a 200 day simple moving average of $30.52. The firm has a market cap of $18.10 billion, a P/E ratio of 15.93, a price-to-earnings-growth ratio of 0.40 and a beta of 1.94.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.84 earnings per share for the quarter, topping analysts' consensus estimates of $0.63 by $0.21. The firm had revenue of $10.24 billion for the quarter, compared to analyst estimates of $12.39 billion. Super Micro Computer had a return on equity of 17.49% and a net margin of 3.70%.The business's quarterly revenue was up 122.7% compared to the same quarter last year. During the same period last year, the company earned $0.31 EPS. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. On average, analysts anticipate that Super Micro Computer, Inc. will post 2.11 earnings per share for the current fiscal year.

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.

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.