Super Micro Computer (NASDAQ:SMCI) Trading Down 3.8% Following Analyst Downgrade

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price fell 3.8% during mid-day trading on Tuesday after Citigroup lowered their price target on the stock from $48.00 to $39.00. Citigroup currently has a neutral rating on the stock. Super Micro Computer traded as low as $30.22 and last traded at $31.41. 39,456,861 shares were traded during mid-day trading, an increase of 12% from the average session volume of 35,340,621 shares. The stock had previously closed at $32.64.

A number of other equities research analysts have also weighed in on the stock. Needham & Company LLC dropped their price objective on shares of Super Micro Computer from $60.00 to $51.00 and set a “buy” rating on the stock in a report on Wednesday, November 5th. Weiss Ratings reiterated a “hold (c)” rating on shares of Super Micro Computer in a research note on Monday, December 29th. JPMorgan Chase & Co. cut their price objective on Super Micro Computer from $43.00 to $40.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Rosenblatt Securities decreased their target price on Super Micro Computer from $60.00 to $55.00 and set a “buy” rating for the company in a report on Wednesday, November 5th. Finally, Zacks Research upgraded Super Micro Computer from a “strong sell” rating to a “hold” rating in a research report on Monday, December 8th. Eight analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $46.19.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Large NVIDIA-related backlog and AI demand could support outsized revenue growth and eventual recovery if margins stabilize; some bullish commentators call SMCI an undervalued AI play. Super Micro: AI’s Most Underrated Trade Of 2026
• Positive Sentiment: Short-squeeze narrative and renewed interest around AI/server demand (TSMC comment on insatiable AI demand) are being cited by some retail-focused writers as a catalyst for a sharp move higher. Short Squeeze Season: Is Super Micro Ready to Fly?
• Neutral Sentiment: Options market shows elevated activity — useful for traders to watch for flow and positioning but ambiguous for direction unless skewed strongly one way. A Closer Look at Super Micro Computer’s Options Market Dynamics
• Neutral Sentiment: Pre-earnings coverage outlines expectations for Q2 FY2026 and where guidance/beat-or-miss risks lie — useful for near-term event risk management. Super Micro Computer’s Q2 2026 Earnings: What to Expect
• Negative Sentiment: Analysts are cutting targets and turning cautious after a steep share decline; Citigroup lowered its price target to $39 with a neutral rating (reduces investor conviction). Citigroup Lowers PT on SMCI
• Negative Sentiment: Margin pressure remains the central concern: SMCI must accept NVIDIA pricing to capture Blackwell/server sales, and management has warned of near-term gross-margin declines — analysts (Goldman, Mizuho) flagged limited visibility on margin recovery. SMCI vs. META: Which AI Infrastructure Stock Has an Edge Now?
• Negative Sentiment: Recent coverage highlights analyst pessimism and share-price weakness after FY2026 earnings and guidance; headlines point to a meaningful decline from prior highs and warn recovery depends on margin and cash-flow improvement. 2 Analysts Sour On Super Micro: Can SMCI Recover Amid +40% Fall?
• Negative Sentiment: High-profile sell calls and negative pundit commentary (e.g., Jim Cramer recommending selling SMCI) add to downside sentiment and can pressure momentum traders. Jim Cramer Says Sell Super Micro

Institutional Investors Weigh In On Super Micro Computer

Several large investors have recently bought and sold shares of SMCI. Greenleaf Trust increased its position in shares of Super Micro Computer by 89.6% during the fourth quarter. Greenleaf Trust now owns 13,400 shares of the company’s stock worth $392,000 after purchasing an additional 6,333 shares in the last quarter. Cane Capital Partners LLC purchased a new position in Super Micro Computer in the 4th quarter valued at $271,000. Flagship Harbor Advisors LLC acquired a new stake in Super Micro Computer during the 4th quarter worth $25,000. Newbridge Financial Services Group Inc. grew its holdings in shares of Super Micro Computer by 8.3% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 4,897 shares of the company’s stock worth $143,000 after buying an additional 375 shares in the last quarter. Finally, Sound Income Strategies LLC grew its holdings in shares of Super Micro Computer by 105.9% during the fourth quarter. Sound Income Strategies LLC now owns 6,466 shares of the company’s stock worth $189,000 after buying an additional 3,325 shares in the last quarter. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

Super Micro Computer Trading Up 2.6%

The stock has a market capitalization of $19.25 billion, a PE ratio of 25.79, a P/E/G ratio of 0.66 and a beta of 1.54. The company’s 50 day moving average price is $31.92 and its two-hundred day moving average price is $42.71. 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 (NASDAQ:SMCI) last released its earnings results on Tuesday, November 4th. The company reported $0.35 earnings per share for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.11). The business had revenue of $5.02 billion during the quarter, compared to analysts’ expectations of $6.48 billion. Super Micro Computer had a return on equity of 12.70% and a net margin of 3.77%.The company’s revenue for the quarter was down 15.5% compared to the same quarter last year. During the same period last year, the business earned $0.73 earnings per share. Super Micro Computer has set its Q2 2026 guidance at 0.460-0.540 EPS. As a group, analysts expect that Super Micro Computer, Inc. will post 1.86 earnings per share 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.