Super Micro Computer (NASDAQ:SMCI) Trading 4.1% Higher on Analyst Upgrade

Key Points

• Super Micro Computer shares rose 4.1% after Citigroup lifted its price target from $33 to $39, though it maintained a neutral rating. Trading volume surged 169% above the daily average.
• The company reported strong adjusted earnings of $1.70 per share and 93.2% year-over-year revenue growth to $11.12 billion, fueled by demand for AI infrastructure. Management also disclosed more than $60 billion in new orders and issued above-consensus fiscal 2027 guidance.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $42.13. Investors continue to weigh the AI-driven growth outlook against margin pressure, cash-flow needs and potential dilution from recent financing.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s share price shot up 4.1% during trading on Thursday after Citigroup raised their price target on the stock from $33.00 to $39.00. Citigroup currently has a neutral rating on the stock. Super Micro Computer traded as high as $42.31 and last traded at $39.16. Approximately 121,695,029 shares were traded during mid-day trading, an increase of 169% from the average daily volume of 45,308,031 shares. The stock had previously closed at $37.61.

Other equities research analysts have also recently issued research reports about the stock. Stifel Nicolaus set a $42.00 price target on shares of Super Micro Computer in a research report on Wednesday. The Goldman Sachs Group reaffirmed a "sell" rating and set a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a research note on Wednesday. Bank of America reiterated an "underperform" rating on shares of Super Micro Computer in a report on Wednesday. Mizuho set a $35.00 target price on Super Micro Computer and gave the stock a "neutral" rating in a research note on Wednesday. Finally, Wedbush boosted their price target on Super Micro Computer from $34.00 to $40.00 and gave the company a "neutral" rating in a report on Wednesday. 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 data from MarketBeat.com, Super Micro Computer presently has an average rating of "Hold" and a consensus price target of $42.13.

Super Micro Computer News Summary

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

• Positive Sentiment: Strong earnings and AI demand: Super Micro reported adjusted earnings of $1.70 per share, well above the roughly $0.92 consensus estimate. Revenue rose 93.2% year over year to $11.12 billion, while improved gross margins helped drive a sharp increase in profit. Super Micro Stock Surges as Earnings Smash Expectations and Revive AI Hope
• Positive Sentiment: Major backlog and above-consensus guidance: Management disclosed more than $60 billion in new orders and forecast fiscal 2027 revenue of $65 billion to $72 billion, far above Wall Street expectations. First-quarter fiscal 2027 revenue and EPS guidance also exceeded consensus, reinforcing expectations for sustained AI data-center spending. Super Micro forecasts upbeat annual revenue
• Positive Sentiment: Broad AI infrastructure optimism: Strong results and forecasts from Lenovo, CoreWeave and other hardware suppliers are providing a positive read-through for Super Micro, suggesting that demand for AI servers, networking equipment and related components remains robust. Stocks making the biggest moves midday
• Neutral Sentiment: Analyst reaction is mixed: Several firms raised price targets, including Rosenblatt, Needham and Wedbush, while Citi maintained a neutral rating. The upgrades acknowledge the stronger outlook but also reflect uncertainty around execution and profitability.
• Negative Sentiment: Revenue and cash-flow concerns remain: Fourth-quarter revenue was below analysts’ expectations, and first-quarter guidance implies materially lower sequential margins. Rapid growth may consume much of the company’s cash through higher working-capital needs, while the recent equity and convertible financing increases dilution risk. Super Micro Computer: Strong Quarter And Outlook, But Concerns Remain

Institutional Investors Weigh In On Super Micro Computer

Several institutional investors and hedge funds have recently modified their holdings of SMCI. Advisors Asset Management Inc. bought a new stake in shares of Super Micro Computer during the first quarter valued at approximately $39,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Super Micro Computer by 42.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,479 shares of the company's stock valued at $171,000 after buying an additional 1,036 shares in the last quarter. Baird Financial Group Inc. grew its position in shares of Super Micro Computer by 54.9% in the 2nd quarter. Baird Financial Group Inc. now owns 18,955 shares of the company's stock worth $929,000 after buying an additional 6,718 shares during the period. Flow Traders U.S. LLC bought a new position in shares of Super Micro Computer in the 2nd quarter worth about $277,000. Finally, Daiwa Securities Group Inc. lifted its position in Super Micro Computer by 3.4% during the 2nd quarter. Daiwa Securities Group Inc. now owns 85,647 shares of the company's stock valued at $4,198,000 after acquiring an additional 2,799 shares during the period. 84.06% of the stock is owned by hedge funds and other institutional investors.

Super Micro Computer Price Performance

The firm's 50 day moving average is $30.39 and its 200 day moving average is $30.48. The firm has a market cap of $23.55 billion, a P/E ratio of 12.24, a price-to-earnings-growth ratio of 0.37 and a beta of 1.95. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.66 and a quick ratio of 1.29.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, beating analysts' consensus estimates of $0.92 by $0.78. Super Micro Computer had a return on equity of 31.02% and a net margin of 5.71%.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 company earned $0.31 EPS. The firm's revenue for the quarter 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. As a group, analysts anticipate that Super Micro Computer, Inc. will post 2.97 earnings per share 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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