Super Micro Computer (NASDAQ:SMCI) Trading Down 4% – Time to Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) shares fell 4% during mid-day trading on Thursday . The company traded as low as $37.37 and last traded at $37.38. Approximately 26,206,848 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 44,714,246 shares. The stock had previously closed at $38.93.

Key Super Micro Computer News

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

• Positive Sentiment: Oracle’s spending outlook is supporting expectations for sustained AI-server demand, benefiting Super Micro alongside Hewlett Packard Enterprise and Dell. The company’s shares are participating in the sector rally despite no new company-specific announcement. Hewlett Packard Enterprise and Dell Surge as Oracle’s Capex Guidance Lifts AI Server Demand
• Positive Sentiment: Recent analysis highlights a potential long-term rerating tied to Super Micro’s exposure to AI infrastructure and data-center growth, helping reinforce the bullish narrative. Super Micro’s $60 Billion Rerating
• Positive Sentiment: Super Micro remains attractive to value-focused investors relative to NetApp, with its AI growth potential and comparatively low valuation supporting interest in SMCI. SMCI or NTAP: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: The latest earnings report showed a substantial year-over-year revenue increase and an earnings beat, although revenue came in below estimates. Management’s forward EPS guidance provides a key test for whether the AI-driven growth can continue.
• Neutral Sentiment: Recent commentary and market coverage emphasize SMCI’s volatility, including option-income products and the stock’s sensitivity to AI-server momentum. These developments may amplify trading activity without changing the company’s fundamentals. This Super Micro ETF Is Paying a Massive Yield but There Is a Big Catch
• Negative Sentiment: Earlier pressure came from reported insider selling, which can concern investors about executive confidence even though the broader AI-server rally is currently outweighing that signal. Super Micro Computer Stock Price After Insider Selling

Analysts Set New Price Targets

Several brokerages have recently weighed in on SMCI. Barclays set a $39.00 price target on shares of Super Micro Computer and gave the company an “equal weight” rating in a research report on Wednesday, August 12th. Citigroup raised their price objective on shares of Super Micro Computer from $33.00 to $39.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 12th. The Goldman Sachs Group reaffirmed a “sell” rating and set a $34.00 target price (up from $30.00) on shares of Super Micro Computer in a research note on Wednesday, August 12th. Rosenblatt Securities lifted their target price on shares of Super Micro Computer from $45.00 to $51.00 and gave the stock a “buy” rating in a research note on Wednesday, August 12th. Finally, Sanford C. Bernstein set a $42.00 target price on shares of Super Micro Computer in a report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $42.13.

Super Micro Computer Price Performance

The company has a market cap of $26.34 billion, a price-to-earnings ratio of 12.53, a PEG ratio of 0.70 and a beta of 2.00. The stock’s 50-day simple moving average is $32.77 and its 200 day simple moving average is $31.52. The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI) last announced its earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%.The company had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.60 billion. During the same quarter in the previous year, the company 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, equities research analysts anticipate that Super Micro Computer, Inc. will post 4.04 EPS for the current fiscal year.

Insider Activity

In related news, CEO Charles Liang sold 100,000 shares of Super Micro Computer stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $37.19, for a total value of $3,719,000.00. Following the completion of the transaction, the chief executive officer directly owned 537,506 shares in the company, valued at approximately $19,989,848.14. This trade represents a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of Super Micro Computer stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total value of $3,719,000.00. Following the completion of the transaction, the director owned 537,506 shares of the company’s stock, valued at $19,989,848.14. The trade was a 15.69% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Super Micro Computer

A number of large investors have recently modified their holdings of the company. California State Teachers Retirement System grew its stake in shares of Super Micro Computer by 2,984.2% during the 2nd quarter. California State Teachers Retirement System now owns 25,071,724 shares of the company’s stock worth $735,354,000 after purchasing an additional 24,258,827 shares during the period. Norges Bank purchased a new position in Super Micro Computer during the 4th quarter valued at about $136,569,000. Assenagon Asset Management S.A. lifted its holdings in shares of Super Micro Computer by 1,770.4% in the second quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock valued at $63,789,000 after purchasing an additional 2,058,588 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Super Micro Computer by 21.2% in the fourth quarter. Invesco Ltd. now owns 9,953,780 shares of the company’s stock valued at $291,347,000 after purchasing an additional 1,738,749 shares in the last quarter. Finally, Amundi grew its position in shares of Super Micro Computer by 188.8% in the fourth quarter. Amundi now owns 2,421,891 shares of the company’s stock valued at $70,889,000 after purchasing an additional 1,583,229 shares during the last quarter. 84.06% of the stock is owned by hedge funds and other institutional investors.

About Super Micro Computer

Super Micro Computer, Inc, doing business as Supermicro, develops and sells application-optimized server and storage systems. Its product portfolio includes servers, workstations, storage platforms, networking equipment, motherboards, chassis, power supplies and related software and support services.

The company also provides high-performance computing and data center infrastructure, including systems designed for artificial intelligence, machine learning, cloud computing, enterprise applications, telecommunications and edge computing.