Super Micro Computer, Inc. (NASDAQ:SMCI – Get Free Report) shot up 9.5% during trading on Wednesday. The company traded as high as $37.45 and last traded at $35.57. 81,822,318 shares changed hands during mid-day trading, an increase of 87% from the average daily volume of 43,682,723 shares. The stock had previously closed at $32.47.
Super Micro Computer News Summary
Here are the key news stories impacting Super Micro Computer this week:
- Positive Sentiment: Revenue guidance was raised sharply: Supermicro now expects fiscal Q1 revenue of $18.5 billion to $19.5 billion, up from its previous forecast of $14.5 billion to $15.5 billion and well above the roughly $14.9 billion analyst consensus. The company also indicated that gross margins should exceed its prior expectations. Super Micro expects first-quarter revenue above estimates
- Positive Sentiment: AI demand remains the primary catalyst: Management attributed the stronger outlook to surging demand for AI platforms and a record backlog of orders. The preliminary update was viewed as evidence that spending on AI infrastructure remains robust, lifting Supermicro and helping comparable server companies such as Dell and Hewlett Packard Enterprise. Why Super Micro Computer Stock Popped Today
- Positive Sentiment: Additional growth opportunities were announced: Supermicro is working with Nokia and NVIDIA on AI-RAN infrastructure for 5G networks, including low-latency edge AI services and a potential path toward AI-native 6G applications. An analyst at Rosenblatt Securities also reaffirmed a Buy rating following the preliminary results. Supermicro Brings NVIDIA Aerial RAN Computer Solutions to the Network Edge with Nokia
- Neutral Sentiment: The preliminary figures are scheduled for further discussion when Supermicro reports results on November 3. Investors will likely focus on whether the unusually strong revenue outlook converts into sustainable margins and cash flow.
- Negative Sentiment: Some coverage remains cautious because of Supermicro’s volatile trading history, questions surrounding its cash position and an ongoing board review. The company must also execute against elevated expectations after the large guidance increase. SMCI stock soars on sales forecast hike but analysts remain cautious
Wall Street Analysts Forecast Growth
A number of brokerages have issued reports on SMCI. Weiss Ratings restated a “hold (c)” rating on shares of Super Micro Computer in a report on Monday, September 21st. Citigroup reaffirmed a “neutral” rating and issued a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a research note on Thursday, October 8th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $51.00 price target on shares of Super Micro Computer in a research note on Friday, October 16th. Northland Securities set a $36.00 price target on shares of Super Micro Computer in a research report on Wednesday, July 22nd. Finally, Sanford C. Bernstein set a $42.00 price objective on shares of Super Micro Computer in a research note on Thursday, August 13th. Four equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Super Micro Computer presently has a consensus rating of “Hold” and a consensus price target of $43.07.
View Our Latest Stock Analysis on SMCI
Super Micro Computer Stock Performance
The company has a market cap of $23.37 billion, a price-to-earnings ratio of 11.12, a price-to-earnings-growth ratio of 0.62 and a beta of 2.02. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07. The stock has a 50-day moving average price of $38.87 and a 200 day moving average price of $33.64.
Super Micro Computer (NASDAQ:SMCI – Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, beating the consensus estimate of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The business had revenue of $11.12 billion for the quarter, compared to analysts’ expectations of $11.60 billion. During the same quarter in the previous year, the business posted $0.31 EPS. Super Micro Computer’s revenue for the quarter was up 93.2% on a year-over-year basis. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, analysts anticipate that Super Micro Computer, Inc. will post 3.94 EPS for the current fiscal year.
Insider Activity at Super Micro Computer
In other news, CEO Charles Liang sold 100,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total value of $4,502,000.00. Following the completion of the transaction, the chief executive officer owned 337,506 shares in the company, valued at $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of the stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the sale, the director directly owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This represents a 22.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 400,000 shares of company stock worth $16,442,000 over the last 90 days. Corporate insiders own 16.10% of the company’s stock.
Institutional Investors Weigh In On Super Micro Computer
A number of hedge funds and other institutional investors have recently made changes to their positions in SMCI. SLT Holdings LLC boosted its stake in Super Micro Computer by 3.0% in the 3rd quarter. SLT Holdings LLC now owns 10,400 shares of the company’s stock worth $427,000 after purchasing an additional 300 shares during the period. World Equity Group Inc. raised its stake in shares of Super Micro Computer by 3.8% in the 1st 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 during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in shares of Super Micro Computer by 0.5% in the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 117,205 shares of the company’s stock valued at $2,669,000 after purchasing an additional 564 shares during the period. Focused Wealth Management Inc lifted its holdings in shares of Super Micro Computer by 3.3% in the first quarter. Focused Wealth Management Inc now owns 21,245 shares of the company’s stock valued at $484,000 after purchasing an additional 677 shares in the last quarter. Finally, MCF Advisors LLC lifted its holdings in shares of Super Micro Computer by 22.8% in the second quarter. MCF Advisors LLC now owns 3,667 shares of the company’s stock valued at $108,000 after purchasing an additional 680 shares in the last quarter. 84.06% of the stock is currently owned by institutional investors and hedge funds.
About Super Micro Computer
Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.
Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.
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