Super Micro Computer (NASDAQ:SMCI) Trading Up 9.2% - Still a Buy?

Key Points

• Super Micro Computer shares jumped 9.2% on heavy trading, with volume far above normal as investors reacted to recent news flow and renewed interest in the stock.
• The company continues to benefit from strong AI infrastructure demand and a large order backlog, but investors are watching closely to see whether it can secure enough components and deliver on growth.
• Wall Street remains cautious overall: several analysts raised price targets, yet the stock’s consensus rating is still Hold, with concerns centered on dilution, financing, operational risks, and regulatory issues.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s stock price shot up 9.2% during trading on Thursday . The company traded as high as $32.05 and last traded at $31.97. 247,413,124 shares traded hands during mid-day trading, an increase of 499% from the average session volume of 41,337,906 shares. The stock had previously closed at $29.27.

Key Super Micro Computer News

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

• Positive Sentiment: Unusually heavy call buying suggests some traders are positioning for a rebound in SMCI, with call volume running well above normal as investors bet the recent weakness may be overdone.
• Positive Sentiment: SMCI says demand for its AI infrastructure remains very strong, with a large order backlog that could support future revenue growth if it can secure enough components and execute on deliveries.
• Neutral Sentiment: Wolfe Research initiated coverage with a Peer Perform rating, noting SMCI is well positioned to benefit from AI spending but faces margin, operational, legal, and regulatory risks that could limit upside. Article Title
• Negative Sentiment: Several reports focused on the company’s financing package, which includes common stock and convertible preferred-related offerings, reinforcing investor worries about dilution and the cost of funding growth. Article Title
• Negative Sentiment: Analyst and commentary pieces also highlighted reputational concerns and share dilution, contributing to the view that the market is reacting negatively to the way SMCI is financing its AI expansion. Article Title

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the company. Rosenblatt Securities raised their price objective on Super Micro Computer from $32.00 to $40.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. CJS Securities raised Super Micro Computer from a "market underperform" rating to a "market perform" rating in a research note on Wednesday, May 6th. Northland Securities increased their target price on Super Micro Computer from $22.00 to $34.00 in a report on Wednesday, May 6th. JPMorgan Chase & Co. raised their price target on Super Micro Computer from $28.00 to $32.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Finally, Mizuho lifted their price target on Super Micro Computer from $36.00 to $44.00 and gave the stock a "neutral" rating in a research note on Monday, June 1st. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Super Micro Computer currently has an average rating of "Hold" and a consensus price target of $39.00.

Super Micro Computer Stock Up 9.2%

The company has a market capitalization of $19.23 billion, a P/E ratio of 16.92, a PEG ratio of 0.68 and a beta of 1.87. 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 50 day moving average of $31.99 and a 200-day moving average of $31.22.

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

Institutional Investors Weigh In On Super Micro Computer

Several hedge funds have recently bought and sold shares of SMCI. Vanguard Group Inc. increased its stake in shares of Super Micro Computer by 4.1% during the third 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 in the last quarter. Geode Capital Management LLC boosted its position in shares of Super Micro Computer by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 13,808,499 shares of the company's stock worth $402,627,000 after purchasing an additional 41,314 shares in the last quarter. Invesco Ltd. grew its stake in shares of Super Micro Computer by 21.2% in the 4th quarter. Invesco Ltd. now owns 9,953,780 shares of the company's stock worth $291,347,000 after buying an additional 1,738,749 shares during the last quarter. Disciplined Growth Investors Inc. MN grew its stake in shares of Super Micro Computer by 16.5% in the second quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company's stock worth $476,905,000 after acquiring an additional 1,381,046 shares during the last quarter. Finally, Norges Bank bought a new position in shares of Super Micro Computer in the fourth quarter worth approximately $136,569,000. Institutional investors own 84.06% of the company's stock.

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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