Super Micro Computer (NASDAQ:SMCI) Shares Gap Up on Earnings Beat

Key Points

• Super Micro Computer shares jumped after the company reported adjusted EPS of $1.70, well above the $0.92 consensus estimate and up from $0.31 a year earlier.
• Quarterly revenue rose 93.2% year over year to $11.12 billion, though it fell short of analysts’ $11.60 billion estimate; net margin remained modest at 3.7%.
• Strong fiscal 2027 guidance fueled optimism about sustained AI-server and data-center demand, with projected annual revenue of $65 billion–$72 billion versus the $53.1 billion consensus.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $31.60, but opened at $34.99. Super Micro Computer shares last traded at $35.7810, with a volume of 46,139,063 shares.

The company reported $1.70 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 during the quarter, compared to analyst estimates of $11.60 billion. During the same quarter last year, the firm earned $0.31 EPS. 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.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Super Micro reported adjusted earnings of $1.70 per share, well above the approximately $0.92 consensus estimate and up from $0.31 a year earlier. Quarterly revenue increased 93.2% year over year to $11.12 billion, while adjusted gross margin improved to 17.6%. Super Micro Stock Surges as Earnings Smash Expectations and Revive AI Hope
• Positive Sentiment: The company issued exceptionally strong guidance, forecasting fiscal 2027 revenue of $65 billion to $72 billion, versus analyst expectations of $53.1 billion. 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 estimates of $0.72. Super Micro forecasts upbeat annual revenue
• Positive Sentiment: Investors interpreted the results as evidence that AI server demand and the broader data-center buildout remain strong. Super Micro and CoreWeave both benefited from upbeat forecasts for computing capacity demand. CoreWeave, Super Micro climb on signs of sustained AI buildout
• Positive Sentiment: Analyst sentiment strengthened: Rosenblatt raised its price target from $45 to $51 and assigned a buy rating, while Needham reaffirmed its buy rating with a $46 target. Both targets imply substantial upside from the stock’s $31.60 reference price.
• Neutral Sentiment: A reported collaboration involving SpaceX and xAI to develop a gigawatt-scale data center adds potential strategic value, although the project’s financial contribution and timing remain uncertain.
• Negative Sentiment: Revenue of $11.12 billion fell short of the $11.60 billion estimate, and Super Micro’s net margin remained relatively thin at 3.7%. Investors may continue monitoring whether rapid growth translates into durable profitability and cash flow.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on SMCI shares. Raymond James Financial reissued an "outperform" rating on shares of Super Micro Computer in a report on Wednesday. Wolfe Research started coverage on shares of Super Micro Computer in a report on Thursday, June 11th. They issued a "peer perform" rating on the stock. Northland Securities set a $36.00 target price on Super Micro Computer in a research note on Wednesday, July 22nd. Barclays set a $39.00 price target on Super Micro Computer and gave the stock an "equal weight" rating in a research report on Wednesday. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Super Micro Computer in a research report on Wednesday, June 24th. Four equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Super Micro Computer currently has an average rating of "Hold" and an average price target of $40.21.

Hedge Funds Weigh In On Super Micro Computer

Several hedge funds and other institutional investors have recently made changes to their positions in SMCI. Great Lakes Advisors LLC bought a new position in Super Micro Computer in the 2nd quarter worth approximately $391,000. Comprehensive Financial Planning Inc. PA acquired a new position in Super Micro Computer during the 2nd quarter worth $43,000. Trust Asset Management LLC bought a new position in shares of Super Micro Computer in the second quarter worth $164,000. Tema ETFs LLC increased its holdings in shares of Super Micro Computer by 10.5% during the second quarter. Tema ETFs LLC now owns 10,663 shares of the company's stock valued at $313,000 after purchasing an additional 1,015 shares during the period. Finally, Redhawk Wealth Advisors Inc. acquired a new position in shares of Super Micro Computer during the second quarter valued at $253,000. 84.06% of the stock is currently owned by institutional investors and hedge funds.

Super Micro Computer Price Performance

The business has a fifty day moving average price of $30.58 and a 200 day moving average price of $30.44. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.66 and a quick ratio of 1.29. The company has a market capitalization of $21.76 billion, a price-to-earnings ratio of 19.13, a price-to-earnings-growth ratio of 0.37 and a beta of 1.95.

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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