Super Micro Computer (NASDAQ:SMCI) Stock Price Down 28% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price was down 28% on Wednesday . The company traded as low as $29.14 and last traded at $29.27. Approximately 186,260,500 shares were traded during trading, an increase of 372% from the average daily volume of 39,440,336 shares. The stock had previously closed at $40.64.

Key Headlines Impacting Super Micro Computer

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

• Negative Sentiment: Super Micro said it will raise $7 billion to fund component purchases for AI server orders, but the financing plan is pressuring the stock because investors are worried about shareholder dilution. Reuters: Super Micro Computer plans to raise $7 billion in equity offerings
• Positive Sentiment: The company also disclosed that it has received about $39 billion in recent AI server orders from more than 20 customers, highlighting very strong demand for its AI infrastructure products. Yahoo Finance: Supermicro Announces Proposed $7.0 Billion of Equity and Equity-linked Financing Transactions To Fund AI Orders
• Neutral Sentiment: Broader weakness in tech and AI-related stocks added to the selling pressure, making SMCI part of a wider momentum-stock selloff rather than an isolated move. Yahoo Finance: Stock Market Today

Analyst Ratings Changes

A number of analysts have weighed in on SMCI shares. Wedbush dropped their target price on shares of Super Micro Computer from $42.00 to $34.00 and set a “neutral” rating on the stock in a report on Wednesday, May 6th. Barclays dropped their target price on shares of Super Micro Computer from $38.00 to $34.00 and set an “equal weight” rating on the stock in a report on Wednesday, May 6th. Rosenblatt Securities increased their target price on shares of Super Micro Computer from $32.00 to $40.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Mizuho upped their price target on shares of Super Micro Computer from $36.00 to $44.00 and gave the stock a “neutral” rating in a research report on Monday, June 1st. Finally, Argus restated a “hold” rating on shares of Super Micro Computer in a research report on Friday, March 20th. Four analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Super Micro Computer has a consensus rating of “Hold” and an average price target of $39.00.

Super Micro Computer Stock Down 27.9%

The firm’s 50-day moving average price is $31.83 and its 200 day moving average price is $31.24. The firm has a market cap of $17.63 billion, a P/E ratio of 15.51, a price-to-earnings-growth ratio of 0.73 and a beta of 1.87. The company has a quick ratio of 1.29, a current ratio of 2.66 and a debt-to-equity ratio of 0.88.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings results 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 quarterly revenue was up 122.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.31 earnings per share. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. As a group, research analysts expect that Super Micro Computer, Inc. will post 2.12 earnings per share for the current year.

Hedge Funds Weigh In On Super Micro Computer

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. CI Investments Inc. grew its position in Super Micro Computer by 12.1% in the 3rd quarter. CI Investments Inc. now owns 3,001 shares of the company’s stock valued at $144,000 after buying an additional 324 shares in the last quarter. MCF Advisors LLC grew its position in Super Micro Computer by 9.6% in 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 in the last quarter. CIBC Private Wealth Group LLC grew its position in Super Micro Computer by 11.8% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 3,206 shares of the company’s stock valued at $154,000 after buying an additional 339 shares in the last quarter. Murphy & Mullick Capital Management Corp grew its position in Super Micro Computer by 42.1% in the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 1,165 shares of the company’s stock valued at $57,000 after buying an additional 345 shares in the last quarter. Finally, City State Bank grew its position in Super Micro Computer by 4.9% in the 4th quarter. City State Bank now owns 7,500 shares of the company’s stock valued at $220,000 after buying an additional 350 shares in the last quarter. 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.