Super Micro Computer (NASDAQ:SMCI) Trading Up 13.8% on Better-Than-Expected Earnings

Super Micro Computer, Inc. (NASDAQ:SMCI) shares shot up 13.8% on Wednesday following a stronger than expected earnings report. The stock traded as high as $34.94 and last traded at $33.76. 115,096,313 shares changed hands during trading, an increase of 220% from the average session volume of 35,984,230 shares. The stock had previously closed at $29.67.

The company reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.49 by $0.20. The company had revenue of $12.68 billion for the quarter, compared to analysts’ expectations of $10.34 billion. Super Micro Computer had a net margin of 3.11% and a return on equity of 13.52%. Super Micro Computer’s revenue for the quarter was up 123.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.59 EPS. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS.

Super Micro Computer News Roundup

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

• Positive Sentiment: Q2 beat and raised guidance — SMCI reported $12.7B revenue (≈123% Y/Y) and $0.69 EPS, topping estimates, and raised quarterly and full-year revenue targets (next quarter revenue ≥ $12.3B; FY revenue raised toward $40B), which is the primary catalyst for the rally. Supermicro Announces Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: AI/hyperscale demand and DCBBS progress — management says hyperscale customers and Data Center Building Block Solutions (DCBBS) are accelerating; DCBBS carries much higher gross margins and is expected to be a growing profit contributor, supporting optimism about sustainable revenue. SMCI Soars Post-Earnings: Head Fake, Or Sign of True Recovery?
• Positive Sentiment: Unusual options and heavy volume — large call buying (≈390,768 calls, ~51% above typical) and extremely high share volume indicate speculative/levered bullish positioning that magnified today’s upside.
• Neutral Sentiment: Analyst support mixed — some firms (e.g., Rosenblatt) reiterated Buy ratings, while consensus price targets still imply upside (~$45 consensus), leaving room for further gains if execution holds.
• Negative Sentiment: Sharp margin pressure — adjusted gross margin fell to ~6.3%, a large sequential and Y/Y decline; management flagged near-term margin pressure, which raises concern about durability of profitability. SMCI Stock Rallies 11% as AI Boom Boosts Earnings. This Remains a Worry for Super Micro.
• Negative Sentiment: Critics warn the rally may be a “trap” — several analysts/commentators point to mix-driven, low-margin large-model builder sales and argue today’s beat could mask underlying risks to margins and pricing power. SMCI stock’s post-earnings rally may be a ‘trap’ — smart money says sell
• Negative Sentiment: Analyst target cut — Needham trimmed its price target from $51 to $40 (still Buy), signaling caution about margins/earnings sustainability. SMCI – Price target lowered by Needham

Wall Street Analyst Weigh In

SMCI has been the topic of several recent analyst reports. Citigroup decreased their target price on Super Micro Computer from $48.00 to $39.00 and set a “neutral” rating on the stock in a research note on Tuesday, January 20th. The Goldman Sachs Group set a $26.00 price objective on shares of Super Micro Computer and gave the company a “sell” rating in a report on Tuesday, January 13th. Mizuho set a $33.00 price objective on shares of Super Micro Computer in a research report on Wednesday. Rosenblatt Securities restated a “buy” rating and set a $55.00 target price on shares of Super Micro Computer in a research report on Monday. Finally, Wall Street Zen cut shares of Super Micro Computer from a “hold” rating to a “sell” rating in a research note on Saturday, November 15th. Eight investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $45.31.

Institutional Investors Weigh In On Super Micro Computer

A number of hedge funds have recently bought and sold shares of the business. Clear Street LLC purchased a new position in shares of Super Micro Computer in the 2nd quarter worth $158,724,000. Clear Street Group Inc. purchased a new stake in shares of Super Micro Computer during the 3rd quarter valued at about $147,631,000. Norges Bank purchased a new stake in shares of Super Micro Computer during the 2nd quarter valued at about $150,395,000. Marshall Wace LLP lifted its holdings in shares of Super Micro Computer by 596.4% in the 2nd quarter. Marshall Wace LLP now owns 3,437,714 shares of the company’s stock valued at $168,482,000 after acquiring an additional 2,944,049 shares during the last quarter. Finally, Vanguard Group Inc. grew its position in Super Micro Computer by 4.1% in the third quarter. Vanguard Group Inc. now owns 68,848,777 shares of the company’s stock worth $3,300,610,000 after acquiring an additional 2,695,829 shares in the last quarter. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Super Micro Computer Trading Up 13.8%

The company has a 50-day moving average of $31.38 and a 200 day moving average of $41.34. The company has a debt-to-equity ratio of 0.72, a current ratio of 5.39 and a quick ratio of 2.95. The company has a market cap of $20.15 billion, a PE ratio of 25.19, a price-to-earnings-growth ratio of 0.61 and a beta of 1.53.

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.