Super Micro Computer (NASDAQ:SMCI) Shares Gap Up After Earnings Beat

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $29.67, but opened at $32.95. Super Micro Computer shares last traded at $33.3070, with a volume of 30,734,016 shares changing hands.

The company reported $0.69 earnings per share for the quarter, topping 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%. The firm’s revenue for the quarter was up 123.4% on a year-over-year basis. During the same quarter last year, the company earned $0.59 earnings per share. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS.

Key Stories Impacting Super Micro Computer

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

Analyst Ratings Changes

Several equities analysts have issued reports on the company. Rosenblatt Securities reaffirmed a “buy” rating and set a $55.00 price objective on shares of Super Micro Computer in a report on Monday. Citigroup cut their price target on Super Micro Computer from $48.00 to $39.00 and set a “neutral” rating on the stock in a research report on Tuesday, January 20th. KGI Securities raised Super Micro Computer from a “neutral” rating to an “outperform” rating and set a $60.00 price objective for the company in a report on Wednesday, November 5th. Needham & Company LLC cut their target price on shares of Super Micro Computer from $51.00 to $40.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Super Micro Computer in a research report on Monday, December 29th. Eight analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $45.31.

Institutional Trading of Super Micro Computer

Several hedge funds and other institutional investors have recently made changes to their positions in SMCI. Vanguard Group Inc. increased its stake in shares of Super Micro Computer by 4.1% during 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 during the period. Geode Capital Management LLC boosted its holdings in Super Micro Computer by 2.7% in the 2nd quarter. Geode Capital Management LLC now owns 13,752,581 shares of the company’s stock valued at $671,316,000 after purchasing an additional 364,411 shares in the last quarter. Disciplined Growth Investors Inc. MN increased its position in Super Micro Computer by 16.5% during the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company’s stock worth $476,905,000 after purchasing an additional 1,381,046 shares during the period. Invesco Ltd. raised its stake in shares of Super Micro Computer by 31.6% during the 2nd quarter. Invesco Ltd. now owns 8,639,784 shares of the company’s stock worth $423,436,000 after buying an additional 2,073,978 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in shares of Super Micro Computer by 5.3% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 3,971,739 shares of the company’s stock worth $194,655,000 after buying an additional 200,109 shares in the last quarter. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Super Micro Computer Stock Performance

The stock has a 50 day moving average of $31.38 and a two-hundred day moving average of $41.34. The stock has a market capitalization of $20.15 billion, a PE ratio of 25.19, a P/E/G ratio of 0.61 and a beta of 1.53. The company has a debt-to-equity ratio of 0.72, a current ratio of 5.39 and a quick ratio of 2.95.

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.