Super Micro Computer (NASDAQ:SMCI) Trading Up 6.3% - Time to Buy?

Key Points

• Super Micro Computer shares rose 6.3% in midday trading, reaching as high as $35.94 on volume slightly above its daily average. The move came amid renewed investor interest in the stock’s AI infrastructure exposure.
• The company faces a mixed backdrop of positives and risks: it recently appointed Matthew Thauberger as Chief Revenue Officer and saw bullish options activity, but it is also dealing with legal scrutiny, export-control allegations, and internal-control concerns.
• Recent earnings were better than expected on EPS at $0.84 versus $0.63 estimated, but revenue fell short of forecasts at $10.24 billion. Analysts currently rate the stock a Hold overall, with an average price target of $38.43.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) was up 6.3% during mid-day trading on Friday . The stock traded as high as $35.94 and last traded at $35.58. Approximately 39,024,157 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 36,570,215 shares. The stock had previously closed at $33.46.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Super Micro appointed Matthew Thauberger as Chief Revenue Officer, a move that could support sales execution across direct, channel, hyperscale, and strategic AI infrastructure business. Super Micro Computer (SMCI) Appoints Matthew Thauberger as Chief Revenue Officer
• Positive Sentiment: Unusual options activity showed strong bullish interest, with call volume well above normal, suggesting some traders are betting on continued upside.
• Positive Sentiment: Investor attention remains elevated around SMCI’s AI infrastructure exposure, including a collaboration with NANO Nuclear tied to powering next-generation data centers. EXCLUSIVE: NANO Nuclear Eyes AI Infrastructure Role With SMCI
• Neutral Sentiment: Recent commentary on Super Micro’s mixed fiscal Q3 results highlighted improving margins and earnings, but also revenue softness and negative operating cash flow, leaving the earnings picture mixed. Super Micro Computer: Back To Accounting Basics
• Negative Sentiment: Multiple law firms issued deadline reminders for a securities class action, keeping investor attention on alleged disclosure issues and potential legal liability. SUPER MICRO DEADLINE TUESDAY: Super Micro Computer, Inc. Investors Have Until May 26th...
• Negative Sentiment: Fresh scrutiny over alleged export-control violations and a Taiwan investigation into suspected smuggling of AI servers to China added to the compliance overhang. Taiwan Probe Puts Super Micro AI Server Exports in Focus
• Negative Sentiment: Coverage from CFO Dive said Super Micro’s internal-control repairs remain under scrutiny, which could prolong uncertainty around governance and accounting. Super Micro’s protracted internal control repairs draw scrutiny

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on SMCI shares. CJS Securities upgraded shares of Super Micro Computer from a "market underperform" rating to a "market perform" rating in a research report on Wednesday, May 6th. Barclays decreased their price target on shares of Super Micro Computer from $38.00 to $34.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 6th. Sanford C. Bernstein decreased their price target on shares of Super Micro Computer from $42.00 to $37.00 and set a "market perform" rating for the company in a research report on Wednesday, February 4th. Rosenblatt Securities upped their price target on shares of Super Micro Computer from $32.00 to $40.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Finally, Wedbush decreased their price target on shares of Super Micro Computer from $42.00 to $34.00 and set a "neutral" rating for the company in a research report on Wednesday, May 6th. Four investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $38.43.

Super Micro Computer Stock Performance

The stock's 50 day moving average price is $27.81 and its 200 day moving average price is $30.96. 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 company has a market capitalization of $21.40 billion, a P/E ratio of 18.83, a price-to-earnings-growth ratio of 0.56 and a beta of 1.69.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.84 EPS for the quarter, beating analysts' consensus estimates of $0.63 by $0.21. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The company had revenue of $10.24 billion for the quarter, compared to analyst estimates of $12.39 billion. During the same period in the prior year, the firm posted $0.31 EPS. The company's quarterly revenue was up 122.7% on a year-over-year basis. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. As a group, equities analysts expect that Super Micro Computer, Inc. will post 2.12 EPS for the current year.

Institutional Investors Weigh In On Super Micro Computer

A number of institutional investors have recently modified their holdings of SMCI. Norges Bank bought a new stake in shares of Super Micro Computer in the 4th quarter valued at $136,569,000. Clear Street Group Inc. bought a new stake in shares of Super Micro Computer in the 3rd quarter valued at $147,631,000. Vanguard Group Inc. boosted its stake in shares of Super Micro Computer by 4.1% in the 3rd quarter. Vanguard Group Inc. now owns 68,848,777 shares of the company's stock valued at $3,300,610,000 after purchasing an additional 2,695,829 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Super Micro Computer by 833.8% during the third quarter. Dimensional Fund Advisors LP now owns 2,939,536 shares of the company's stock worth $140,882,000 after acquiring an additional 2,624,746 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in Super Micro Computer by 21.2% during the fourth quarter. Invesco Ltd. now owns 9,953,780 shares of the company's stock worth $291,347,000 after acquiring an additional 1,738,749 shares in the last quarter. 84.06% of the stock is owned by institutional investors.

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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