Needham & Company LLC Has Lowered Expectations for Super Micro Computer (NASDAQ:SMCI) Stock Price

Super Micro Computer (NASDAQ:SMCI) had its price objective dropped by analysts at Needham & Company LLC from $51.00 to $40.00 in a research report issued to clients and investors on Wednesday, Marketbeat Ratings reports. The brokerage currently has a “buy” rating on the stock. Needham & Company LLC’s price target points to a potential upside of 29.66% from the company’s previous close.

SMCI has been the topic of a number of other research reports. The Goldman Sachs Group set a $26.00 price objective on shares of Super Micro Computer and gave the stock a “sell” rating in a research report on Tuesday, January 13th. Northland Securities set a $63.00 price target on shares of Super Micro Computer in a research note on Wednesday, November 5th. Mizuho set a $31.00 price target on shares of Super Micro Computer and gave the stock a “neutral” rating in a research report on Friday, January 9th. Zacks Research upgraded shares of Super Micro Computer from a “strong sell” rating to a “hold” rating in a research note on Monday, December 8th. Finally, Wedbush lowered their target price on Super Micro Computer from $48.00 to $42.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $44.13.

Super Micro Computer Stock Performance

Shares of Super Micro Computer stock opened at $30.85 on Wednesday. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.70 and a quick ratio of 2.95. The firm has a market cap of $18.42 billion, a price-to-earnings ratio of 23.02, a price-to-earnings-growth ratio of 0.70 and a beta of 1.53. The stock’s 50-day moving average is $31.34 and its 200-day moving average is $41.26. Super Micro Computer has a one year low of $27.60 and a one year high of $66.44.

Super Micro Computer (NASDAQ:SMCI) last announced its earnings results on Tuesday, February 3rd. The company reported $0.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.49 by $0.20. The business had revenue of $12.68 billion for the quarter, compared to analyst estimates of $10.34 billion. Super Micro Computer had a return on equity of 13.22% and a net margin of 3.11%.Super Micro Computer’s revenue for the quarter was up 123.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.59 EPS. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS. Equities analysts predict that Super Micro Computer will post 1.86 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Super Micro Computer

Institutional investors and hedge funds have recently modified their holdings of the company. Clear Street LLC bought a new position in Super Micro Computer during the second quarter worth about $158,724,000. Clear Street Group Inc. bought a new stake in Super Micro Computer in the third quarter valued at approximately $147,631,000. Norges Bank acquired a new stake in shares of Super Micro Computer in the second quarter valued at approximately $150,395,000. Marshall Wace LLP boosted its stake in shares of Super Micro Computer by 596.4% during the 2nd quarter. Marshall Wace LLP now owns 3,437,714 shares of the company’s stock worth $168,482,000 after acquiring an additional 2,944,049 shares during the period. Finally, Vanguard Group Inc. boosted its stake in shares of Super Micro Computer by 4.1% during the 3rd 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 during the period. 84.06% of the stock is owned by institutional investors.

Super Micro Computer News Roundup

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

• Positive Sentiment: Blowout Q2 results and raised guidance: SMCI reported ~ $12.7B revenue (up ~123% Y/Y) and $0.69 adj. EPS, beating estimates, and raised full‑year revenue and next-quarter guidance — the core reason the stock rallied earlier. Zacks: SMCI Q2 Earnings Beat
• Positive Sentiment: AI server demand and product traction: Management cited continued hyperscale/AI demand and growth in higher‑margin Data Center Building Block Solutions (DCBBS), which management expects to contribute meaningfully to profit mix — a structural upside if DCBBS scales. MarketBeat: SMCI Soars Post-Earnings
• Positive Sentiment: Unusual call-option buying: Large call volume shows bullish speculative interest and likely amplified the post-earnings rally (short-term positive flow).
• Neutral Sentiment: Analyst views remain mixed but not uniformly bearish: Several firms cut price targets while keeping higher‑conviction ratings (e.g., Needham cut PT but kept Buy; Raymond James lowered its PT but retained Outperform), leaving upside in some models but signaling caution. MarketScreener: Raymond James PT Cut
• Neutral Sentiment: Positive bull-case commentary and valuation arguments: Multiple bullish writeups argue SMCI remains undervalued given AI exposure and a low forward P/S, supporting longer-term upside if margins normalize.
• Negative Sentiment: Severe gross-margin pressure: Adjusted gross margin fell to ~6.4% (new low), driven by product mix, expedite costs and customer concentration — a key risk since revenue growth with shrinking margins hurts profitability and valuation. Seeking Alpha: Margin Concerns
• Negative Sentiment: Analyst downgrades/price-target cuts adding near-term selling pressure: Goldman Sachs nudged its PT down (and keeps a Sell), Needham, Bernstein and others trimmed targets — these signals can prompt profit-taking and weigh on the stock. MarketScreener: Goldman Sachs PT

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.