Super Micro Computer (NASDAQ:SMCI) Trading 1.7% Higher – Should You Buy?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price traded up 1.7% on Friday . The company traded as high as $40.60 and last traded at $39.84. 61,529,450 shares traded hands during trading, an increase of 36% from the average daily volume of 45,376,379 shares. The stock had previously closed at $39.16.

Super Micro Computer News Summary

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

• Positive Sentiment: Strong earnings and fiscal 2027 outlook: Super Micro reported quarterly EPS of $1.70, well above the $0.92 consensus estimate, while revenue rose 93% year over year to $11.12 billion. Management forecast fiscal 2027 revenue of $65 billion to $72 billion, substantially above Wall Street expectations. Big Beat, Big Backlog, Big Caveats: Inside Super Micro’s 33% Upside Potential
• Positive Sentiment: Record AI demand and backlog: More than $60 billion in new orders and continuing data-center capacity constraints are supporting the bullish case. Investors view the backlog as evidence that hyperscaler and enterprise spending on AI infrastructure remains robust. Super Micro Stock Extends Rally After Blockbuster Earnings
• Positive Sentiment: Analyst support and sector momentum: Needham assigned SMCI a “Buy” rating, Citi raised its price target to $39, and Bernstein increased its target after the strong guidance. Broader optimism around AI-server demand, including Lenovo’s expanding pipeline, is also lifting the sector. Super Micro Computer Earns Buy Rating from Needham
• Neutral Sentiment: Technical rebound: Momentum traders are focused on SMCI’s breakout and substantial recovery from its recent lows, but coverage is increasingly asking where the rally may peak after the rapid advance. Stock of the Day: Where Is the Top for Super Micro Computer?
• Negative Sentiment: Margin rebound may not persist: Fourth-quarter gross margin benefited from delayed, higher-margin projects and reached roughly 17.5%, but management expects fiscal Q1 2027 margin to fall back near 10.6% as lower-margin hyperscale business dominates the mix. Super Micro’s Margin Surprise Is Already Guided Back Down
• Negative Sentiment: Execution and financing risks remain: Quarterly revenue fell short of estimates, while rapid growth could consume significant working capital. Investors also remain cautious about customer concentration, possible order cancellations, execution history, and dilution from the company’s large equity and convertible financing.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on SMCI shares. 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 report on Wednesday. Northland Securities set a $36.00 price target on Super Micro Computer in a research note on Wednesday, July 22nd. The Goldman Sachs Group reaffirmed a “sell” rating and issued a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a report on Wednesday. Stifel Nicolaus set a $42.00 price objective on Super Micro Computer in a research report on Wednesday. Finally, Sanford C. Bernstein set a $42.00 target price on Super Micro Computer in a report on Thursday. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Super Micro Computer currently has an average rating of “Hold” and an average target price of $42.13.

Super Micro Computer Stock Up 1.7%

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 firm has a market capitalization of $23.96 billion, a P/E ratio of 12.45, a P/E/G ratio of 0.45 and a beta of 1.95. The company’s 50-day simple moving average is $30.23 and its two-hundred day simple moving average is $30.53.

Super Micro Computer (NASDAQ:SMCI) last issued its quarterly earnings data 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. The firm had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 31.02%. The company’s revenue for the quarter was up 93.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, research analysts expect that Super Micro Computer, Inc. will post 2.97 earnings per share for the current year.

Institutional Trading of Super Micro Computer

Hedge funds have recently bought and sold shares of the stock. MCF Advisors LLC increased its holdings in Super Micro Computer by 9.6% in the 4th quarter. MCF Advisors LLC now owns 3,696 shares of the company’s stock worth $108,000 after acquiring an additional 325 shares in the last quarter. CIBC Private Wealth Group LLC increased 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 purchasing an additional 339 shares during the last quarter. City State Bank increased its stake in Super Micro Computer by 4.9% in the 4th 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 last quarter. World Equity Group Inc. raised its stake 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 purchasing an additional 362 shares in the last quarter. Finally, Sunbelt Securities Inc. raised its position in shares of Super Micro Computer by 26.4% during the 3rd quarter. Sunbelt Securities Inc. now owns 1,870 shares of the company’s stock valued at $90,000 after buying an additional 390 shares in the last quarter. 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.