Wall Street Zen Upgrades Super Micro Computer (NASDAQ:SMCI) to Buy

Super Micro Computer (NASDAQ:SMCI) was upgraded by Wall Street Zen from a “hold” rating to a “buy” rating in a report issued on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also recently commented on the company. Stifel Nicolaus set a $42.00 price target on Super Micro Computer in a research note on Wednesday, August 12th. Mizuho boosted their target price on Super Micro Computer from $35.00 to $43.00 and gave the company a “neutral” rating in a research note on Tuesday, October 6th. Raymond James Financial reiterated an “outperform” rating and set a $48.00 price objective on shares of Super Micro Computer in a report on Wednesday, August 12th. Barclays set a $39.00 target price on Super Micro Computer and gave the company an “equal weight” rating in a research note on Wednesday, August 12th. Finally, Wedbush raised their target price on shares of Super Micro Computer from $34.00 to $40.00 and gave the stock a “neutral” rating in a report on Wednesday, August 12th. Four investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $43.07.

Super Micro Computer Price Performance

Shares of NASDAQ SMCI opened at $32.95 on Friday. The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65. The company’s 50-day simple moving average is $38.23 and its 200-day simple moving average is $32.68. The firm has a market cap of $21.65 billion, a price-to-earnings ratio of 10.30, a price-to-earnings-growth ratio of 0.51 and a beta of 2.17. Super Micro Computer has a 52-week low of $19.48 and a 52-week high of $53.01.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.92 by $0.78. The business had revenue of $11.12 billion for the quarter, compared to analysts’ expectations of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The company’s revenue for the quarter was up 93.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Equities analysts predict that Super Micro Computer will post 4.17 EPS for the current fiscal year.

Insider Activity

In other news, Director Chiu-Chu Liang sold 100,000 shares of the company’s stock in a transaction 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 transaction, the director directly owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the business’s stock in a transaction dated 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 chief executive officer directly owned 337,506 shares in the company, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 400,000 shares of company stock worth $16,442,000. Corporate insiders own 16.10% of the company’s stock.

Institutional Trading of Super Micro Computer

Hedge funds have recently modified their holdings of the business. Bradley & Co. Private Wealth Management LLC purchased a new stake in Super Micro Computer in the 3rd quarter valued at about $49,000. Root Financial Partners LLC bought a new position in Super Micro Computer during the third quarter valued at about $55,000. TOP Private Wealth LLC. acquired a new position in Super Micro Computer in the 2nd quarter valued at approximately $42,000. Comprehensive Financial Planning Inc. PA bought a new position in shares of Super Micro Computer in the second quarter valued at about $43,000. Finally, Contravisory Investment Management Inc. bought a new position in shares of Super Micro Computer during the second quarter worth $49,000. Institutional investors own 84.06% of the company’s stock.

Key Stories Impacting Super Micro Computer

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

• Positive Sentiment: Super Micro enters earnings with strong AI-server demand, expanding rack-scale systems and liquid-cooling solutions, and a favorable Earnings ESP, according to Zacks. These trends could support revenue growth and potentially an earnings beat. Should You Buy, Sell or Hold SMCI Stock Before Q1 Earnings?
• Positive Sentiment: VyOS Networks opened a waitlist for a pre-validated routing system combining Supermicro hardware with VyOS software. The $29,000-plus system targets internet exchanges, regional ISPs and other operators needing 100 GbE routing, providing a new enterprise use case for Supermicro equipment. VyOS Networks Opens Waitlist for Pre-Validated VyOS + Supermicro Routing System
• Neutral Sentiment: Options markets are pricing in an unusually large approximately 13% move around earnings, signaling elevated volatility rather than a clear bullish or bearish direction. Options Traders Expect a Massive Move in SMCI Stock After Earnings
• Positive Sentiment: One report highlighted Supermicro’s nearly doubled revenue, a roughly $60 billion order backlog and valuation that appears low relative to peers. Those factors reinforce the long-term AI-infrastructure opportunity, although investors are waiting for evidence that backlog converts into profitable growth. Supermicro Has Already Survived the AI Hype Cycle
• Negative Sentiment: Intel’s warning that memory shortages are constraining PC demand has triggered a selloff across computer and server hardware stocks. Investors may fear higher component costs, supply limitations and weaker customer demand could weigh on Super Micro’s margins or deliveries. Intel Warning Hits Hardware Stocks
• Negative Sentiment: Technical momentum has weakened, with the stock posting several recent declines and a bearish signal emerging ahead of earnings. This leaves SMCI vulnerable to further volatility if results or forward guidance fail to meet elevated AI-related expectations. Super Micro Stock Dips as Earnings, Bear Signal Loom

Super Micro Computer Company Profile

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.