Super Micro Computer (NASDAQ:SMCI) Trading 2.1% Higher on Analyst Upgrade

Key Points

• Super Micro Computer shares rose 2.1% after Barclays raised its price target on the stock from $34 to $38, even while keeping an equal-weight rating. The stock traded as high as $32.59 on heavy volume, well above its recent close.
• Recent company updates were bullish, with Supermicro reporting preliminary Q4 gross margins of 15% to 17% and saying it received more than $60 billion in new orders. Those developments point to stronger profitability and robust demand for AI infrastructure.
• Analyst views remain mixed despite the upgrade, with the stock carrying a consensus “Hold” rating and an average price target of $39.21. Other firms have both raised and cut targets, reflecting ongoing caution about execution and the durability of the recovery.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s share price rose 2.1% on Thursday after Barclays raised their price target on the stock from $34.00 to $38.00. Barclays currently has an equal weight rating on the stock. Super Micro Computer traded as high as $32.59 and last traded at $31.20. 84,091,212 shares changed hands during mid-day trading, an increase of 91% from the average session volume of 44,057,457 shares. The stock had previously closed at $30.56.

A number of other research firms have also weighed in on SMCI. Rosenblatt Securities upped their target price on shares of Super Micro Computer from $32.00 to $40.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Mizuho lifted their price target on Super Micro Computer from $36.00 to $44.00 and gave the company a "neutral" rating in a research note on Monday, June 1st. Bank of America decreased their price objective on Super Micro Computer from $34.00 to $24.00 and set an "underperform" rating for the company in a report on Tuesday, March 24th. Weiss Ratings restated a "hold (c)" rating on shares of Super Micro Computer in a report on Wednesday, June 24th. Finally, Wedbush cut their target price on Super Micro Computer from $42.00 to $34.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 6th. Four research analysts have rated the stock with a Buy rating, twelve have given 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 an average price target of $39.21.

Key Stories Impacting Super Micro Computer

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

• Positive Sentiment: Super Micro’s preliminary Q4 update showed gross margins of 15% to 17%, far above prior guidance, suggesting better profitability from a stronger product and customer mix. Business Wire preliminary business update
• Positive Sentiment: The company said it received more than $60 billion in new orders, reinforcing demand for AI infrastructure and improving visibility into future growth. Reuters article
• Positive Sentiment: Supermicro also unveiled a new server portfolio powered by 6th Gen AMD EPYC CPUs and AMD Instinct GPUs, which could support cloud, HPC, and AI deployments. PR Newswire article
• Neutral Sentiment: Mizuho lowered its price target on SMCI and kept a neutral view, reflecting caution after the recent rally. Benzinga report
• Negative Sentiment: Some analysts warned that the strong preliminary margin update may not be enough to remove concerns about revenue execution and the durability of the recovery. Seeking Alpha rating downgrade

Hedge Funds Weigh In On Super Micro Computer

Several hedge funds have recently modified their holdings of SMCI. Flagship Harbor Advisors LLC bought a new position in shares of Super Micro Computer in the fourth quarter valued at approximately $25,000. Elyxium Wealth LLC purchased a new position in Super Micro Computer in the fourth quarter worth $26,000. Arax Advisory Partners purchased a new position in Super Micro Computer in the fourth quarter worth $28,000. SHP Wealth Management bought a new position in Super Micro Computer in the 4th quarter valued at $29,000. Finally, Concord Wealth Partners grew its stake in Super Micro Computer by 2,564.1% in the 4th quarter. Concord Wealth Partners now owns 1,039 shares of the company's stock valued at $30,000 after purchasing an additional 1,000 shares during the period. Institutional investors own 84.06% of the company's stock.

Super Micro Computer Trading Up 2.1%

The stock has a market capitalization of $18.76 billion, a PE ratio of 16.51, a price-to-earnings-growth ratio of 0.32 and a beta of 1.94. The firm has a 50-day moving average price of $32.74 and a 200-day moving average price of $30.52. The company has a current ratio of 2.66, a quick ratio of 1.29 and a debt-to-equity ratio of 0.88.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its quarterly earnings results 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 company had revenue of $10.24 billion for the quarter, compared to the consensus estimate of $12.39 billion. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The firm's quarterly revenue was up 122.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.31 EPS. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. As a group, equities analysts forecast that Super Micro Computer, Inc. will post 2.11 EPS 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.

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