Super Micro Computer (NASDAQ:SMCI) Stock Price Down 8.6% After Analyst Downgrade

Key Points

• Shares slid 8.6% intraday after Raymond James cut its price target to $35 (while keeping an outperform rating), as trading volume jumped ~53% to about 56.5M shares.
• Supermicro reported a blowout quarter — revenue ~$12.68B (+123% YoY) and EPS $0.69 beating estimates with raised Q3/FY revenue guidance — but adjusted gross margin plunged to ~6.3–6.4%, producing mixed analyst reactions and a MarketBeat consensus rating of Hold (consensus target ~$44.13).

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares fell 8.6% during mid-day trading on Thursday after Raymond James Financial lowered their price target on the stock from $50.00 to $35.00. Raymond James Financial currently has an outperform rating on the stock. Super Micro Computer traded as low as $29.37 and last traded at $30.85. 56,467,580 shares traded hands during mid-day trading, an increase of 53% from the average session volume of 36,849,176 shares. The stock had previously closed at $33.76.

Several other brokerages also recently issued reports on SMCI. Argus set a $64.00 price objective on shares of Super Micro Computer in a research note on Thursday, November 6th. Zacks Research raised shares of Super Micro Computer from a "strong sell" rating to a "hold" rating in a report on Monday, December 8th. Mizuho set a $33.00 target price on shares of Super Micro Computer in a research report on Wednesday. The Goldman Sachs Group set a $26.00 price objective on Super Micro Computer and gave the company a "sell" rating in a research note on Tuesday, January 13th. Finally, Citigroup lowered their target price on Super Micro Computer from $48.00 to $39.00 and set a "neutral" rating on the stock in a research note on Tuesday, January 20th. Eight research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $44.13.

Key Super Micro Computer News

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

• Positive Sentiment: Blowout Q2 results and strong forward guidance — SMCI reported revenue of ~$12.7B (up ~123% YoY) and $0.69 adj. EPS, and raised next-quarter and full‑year revenue guidance (Q3 revenue guide at ~$12.3B; FY revenue guide to $40B). The surprise top‑line and guidance remain the primary bullish driver. Supermicro Announces Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Bullish sell‑side/support items — Several boutique firms reiterated or kept buy/outperform views (Rosenblatt reiterated Buy), keeping some institutional interest intact. Rosenblatt Securities Reiterates Buy Rating for Super Micro Computer
• Positive Sentiment: Large, bullish options activity and heavy trading — Unusual call buying (roughly 390k calls) and elevated share volume signaled speculative and directional interest after the print, amplifying intraday moves.
• Positive Sentiment: Longer‑term margin catalyst highlighted by management — Management emphasized growth in its Data Center Building Block Solutions (DCBBS) business, which carries much higher gross margins and could help improve overall profitability if it scales as expected. SMCI Soars Post-Earnings: Head Fake, Or Sign of True Recovery?
• Neutral Sentiment: Mixed analyst updates — Several firms trimmed price targets but kept constructive ratings (Raymond James cut its target to $35 but kept “outperform”; Bernstein lowered to $37 and kept “market perform”; Needham trimmed to $40 but retained Buy). These moves temper the enthusiasm without a uniform sell signal. Raymond James Adjusts Price Target to $35 Bernstein Adjusts Price Target to $37 Needham Price Target Cut to $40
• Negative Sentiment: Severe margin deterioration and "near‑term margin pressure" — Adjusted gross margin plunged to ~6.3–6.4%, a multi‑quarter low. Management flagged mix, expedite costs and customer concentration as drivers; investors worry margins may remain depressed even as revenue scales. Margin concerns are the main reason some traders view the rally as a short‑term spike rather than a sustained recovery. Super Micro Computer: Still Plenty Of Issues But Upgrading On Valuation - Hold
• Negative Sentiment: Hardline bearish signal from a major shop — Goldman Sachs kept a Sell rating and actually nudged its target down to $27, underscoring downside risk if margins or the DCBBS ramp miss expectations. Goldman Sachs Adjusts Price Target to $27, Maintains Sell

Institutional Investors Weigh In On Super Micro Computer

Several large investors have recently added to or reduced their stakes in SMCI. Anfield Capital Management LLC purchased a new stake in shares of Super Micro Computer in the second quarter valued at about $25,000. Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Super Micro Computer in the second quarter valued at $25,000. Flagship Harbor Advisors LLC acquired a new position in shares of Super Micro Computer during the 4th quarter valued at about $25,000. Armstrong Advisory Group Inc. purchased a new position in Super Micro Computer during the third quarter worth approximately $29,000. Finally, Concord Wealth Partners boosted its holdings in Super Micro Computer by 2,564.1% in the fourth 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 during the last quarter. 84.06% of the stock is owned by hedge funds and other institutional investors.

Super Micro Computer Stock Down 8.6%

The stock has a fifty day moving average price of $31.38 and a 200-day moving average price of $41.34. The firm has a market cap of $18.42 billion, a PE ratio of 23.02, a PEG ratio of 0.61 and a beta of 1.53. The company has a debt-to-equity ratio of 0.72, a quick ratio of 2.95 and a current ratio of 5.39.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last announced its quarterly earnings data on Tuesday, February 3rd. The company reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.49 by $0.20. The firm had revenue of $12.68 billion during the quarter, compared to analyst estimates of $10.34 billion. Super Micro Computer had a return on equity of 13.52% and a net margin of 3.11%.Super Micro Computer's quarterly revenue was up 123.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.59 earnings per share. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS. Research analysts expect that Super Micro Computer, Inc. will post 1.86 EPS for the current year.

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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