Super Micro Computer Sees Unusually Large Options Volume (NASDAQ:SMCI)

Key Points

• Options activity surged: Investors purchased 375,905 call options on Super Micro Computer, about 38% above its typical daily volume.
• Strong earnings and outlook: Fourth-quarter adjusted EPS reached $1.70, well above the $0.92 consensus, while revenue rose 93.2% year over year to $11.12 billion. Management also issued fiscal 2027 revenue guidance of $65 billion to $72 billion, significantly above Wall Street expectations.
• Shares rallied but risks remain: SMCI rose 17.9% to $37.25 on heavy trading, while analysts including Rosenblatt and Needham raised or maintained bullish targets. However, the consensus rating remains “Hold,” with concerns about margin volatility, product mix and cash generation.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) was the target of unusually large options trading activity on Wednesday. Stock investors purchased 375,905 call options on the stock. This represents an increase of approximately 38% compared to the typical daily volume of 273,078 call options.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on SMCI shares. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Super Micro Computer in a research note on Wednesday. Needham & Company LLC restated a "buy" rating and issued a $46.00 price objective on shares of Super Micro Computer in a research report on Wednesday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Super Micro Computer in a report on Wednesday, June 24th. Citigroup reissued a "neutral" rating and issued a $33.00 target price (up from $31.00) on shares of Super Micro Computer in a research note on Monday, July 13th. Finally, Rosenblatt Securities upped their price target on Super Micro Computer from $45.00 to $51.00 and gave the company a "buy" rating in a research note on Wednesday. Four analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $40.93.

More Super Micro Computer News

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

• Positive Sentiment: Super Micro reported fourth-quarter adjusted EPS of $1.70, well above the roughly $0.92 analyst consensus and up sharply from $0.31 a year earlier. Revenue rose 93.2% year over year to $11.12 billion, supported by AI-server demand, record orders and stronger profitability. Revenue was nevertheless slightly below the $11.60 billion consensus. Super Micro Computer Q4 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Management forecast fiscal 2027 revenue of $65 billion to $72 billion, far above the approximately $53.1 billion consensus estimate. First-quarter fiscal 2027 revenue guidance of $14.5 billion to $15.5 billion and EPS guidance of $1.01 to $1.10 also exceeded Wall Street expectations. The company cited AI-driven growth, a record backlog, enterprise demand and expansion of its direct-liquid-cooling business. Super Micro forecasts upbeat annual revenue
• Positive Sentiment: Analysts raised their valuations following the report. Rosenblatt lifted its price target to $51 and reaffirmed a buy rating, while Needham maintained a buy rating with a $46 target. Wedbush raised its target to $40 but retained a neutral rating. Analysts Boost Forecasts on Super Micro Computer
• Neutral Sentiment: Broader technology shares also benefited from evidence that demand for AI data-center capacity remains strong, with upbeat results from CoreWeave and Super Micro supporting the sector. In-line July CPI data provided a generally supportive backdrop for growth stocks.
• Negative Sentiment: Investors remain concerned about margin volatility. Although fourth-quarter gross margin reached approximately 17.6%, management indicated that first-quarter margins could decline substantially as product mix shifts toward lower-margin enterprise business. The company also offered no firm free-cash-flow commitment, keeping execution and cash generation as risks. Super Micro Computer: A Good Quarter, But The Same Turbulent Margins

Super Micro Computer Trading Up 17.9%

Shares of Super Micro Computer stock traded up $5.65 on Wednesday, hitting $37.25. 110,507,102 shares of the company's stock traded hands, compared to its average volume of 44,371,531. The firm's 50-day moving average price is $30.58 and its two-hundred day moving average price is $30.44. 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 stock has a market capitalization of $22.40 billion, a PE ratio of 19.71, a price-to-earnings-growth ratio of 0.37 and a beta of 1.95. Super Micro Computer has a one year low of $19.48 and a one year high of $58.78.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, topping analysts' consensus estimates of $0.92 by $0.78. Super Micro Computer had a return on equity of 17.49% and a net margin of 3.70%.The business had revenue of $11.12 billion during the quarter, compared to analysts' expectations of $11.60 billion. During the same period in the previous year, the firm earned $0.31 earnings per share. The firm's quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, research analysts expect that Super Micro Computer will post 2.1 EPS for the current fiscal year.

Institutional Investors Weigh In On Super Micro Computer

Several large investors have recently bought and sold shares of the company. MCF Advisors LLC lifted its holdings in shares of Super Micro Computer by 9.6% during the 4th quarter. MCF Advisors LLC now owns 3,696 shares of the company's stock valued at $108,000 after buying an additional 325 shares during the period. CIBC Private Wealth Group LLC grew its holdings in shares of Super Micro Computer by 11.8% in the third quarter. CIBC Private Wealth Group LLC now owns 3,206 shares of the company's stock worth $154,000 after acquiring an additional 339 shares during the period. City State Bank grew its holdings in shares of Super Micro Computer by 4.9% in the fourth quarter. City State Bank now owns 7,500 shares of the company's stock worth $220,000 after acquiring an additional 350 shares during the period. World Equity Group Inc. increased its position in Super Micro Computer by 3.8% during the first quarter. World Equity Group Inc. now owns 9,877 shares of the company's stock valued at $225,000 after acquiring an additional 362 shares during the last quarter. Finally, Sunbelt Securities Inc. lifted its holdings in Super Micro Computer by 26.4% in the third quarter. Sunbelt Securities Inc. now owns 1,870 shares of the company's stock valued at $90,000 after acquiring an additional 390 shares during the period. Institutional investors own 84.06% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source