Super Micro Computer (NASDAQ:SMCI) Shares Down 8.6% Following Analyst Downgrade

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) dropped 8.6% during mid-day trading on Thursday after Raymond James Financial lowered their price target on the stock from $50.00 to $35.00. Raymond James Financial currently has an outperform rating on the stock. Super Micro Computer traded as low as $29.37 and last traded at $30.85. Approximately 56,467,580 shares traded hands during trading, an increase of 53% from the average daily volume of 36,849,176 shares. The stock had previously closed at $33.76.

Other research analysts have also recently issued research reports about the company. Mizuho set a $33.00 target price on Super Micro Computer in a research report on Wednesday. Northland Securities set a $63.00 price target on shares of Super Micro Computer in a report on Wednesday, November 5th. 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. JPMorgan Chase & Co. dropped their price objective on shares of Super Micro Computer from $43.00 to $40.00 and set a “neutral” rating for the company in a research note on Wednesday, November 5th. Finally, Argus set a $64.00 target price on shares of Super Micro Computer in a research note on Thursday, November 6th. 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 company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $44.13.

Super Micro Computer News Summary

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

Hedge Funds Weigh In On Super Micro Computer

A number of hedge funds have recently modified their holdings of SMCI. Vanguard Group Inc. increased its holdings 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 valued at $3,300,610,000 after purchasing an additional 2,695,829 shares during the period. Geode Capital Management LLC grew its position in shares of 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 buying an additional 364,411 shares during the last quarter. Disciplined Growth Investors Inc. MN increased its stake in shares of Super Micro Computer by 16.5% in the second quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company’s stock valued at $476,905,000 after buying an additional 1,381,046 shares during the period. Invesco Ltd. increased its stake in shares of Super Micro Computer by 31.6% in the second quarter. Invesco Ltd. now owns 8,639,784 shares of the company’s stock valued at $423,436,000 after buying an additional 2,073,978 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Super Micro Computer by 5.3% during the second quarter. Charles Schwab Investment Management Inc. now owns 3,971,739 shares of the company’s stock worth $194,655,000 after acquiring an additional 200,109 shares during the last quarter. Institutional investors and hedge funds own 84.06% of the company’s stock.

Super Micro Computer Stock Performance

The stock has a 50 day moving average of $31.34 and a 200 day moving average of $41.26. The company has a market capitalization 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 company has a quick ratio of 2.95, a current ratio of 1.70 and a debt-to-equity ratio of 0.67.

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

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.