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

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price gapped up prior to trading 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 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $10.34 billion. During the same quarter in the previous year, the firm posted $0.59 earnings per share. Super Micro Computer’s quarterly revenue was up 123.4% on a year-over-year basis. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS.

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

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. Barclays set a $38.00 target price on Super Micro Computer and gave the stock an “equal weight” rating in a research note on Wednesday. The Goldman Sachs Group increased their price objective on shares of Super Micro Computer from $26.00 to $27.00 and gave the company a “sell” rating in a research report on Wednesday. Raymond James Financial decreased their target price on shares of Super Micro Computer from $50.00 to $35.00 and set an “outperform” rating for the company in a report on Wednesday. Needham & Company LLC dropped 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 research note on Wednesday. Finally, Sanford C. Bernstein reduced their price target on shares of Super Micro Computer from $42.00 to $37.00 and set a “market perform” rating for the company in a research report on Wednesday. Eight research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $44.13.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SMCI. Vanguard Group Inc. grew its position in Super Micro Computer by 4.1% in the 3rd quarter. Vanguard Group Inc. now owns 68,848,777 shares of the company’s stock worth $3,300,610,000 after purchasing an additional 2,695,829 shares during the period. Geode Capital Management LLC boosted its stake 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 worth $671,316,000 after buying an additional 364,411 shares during the last quarter. Disciplined Growth Investors Inc. MN grew its holdings 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 worth $476,905,000 after acquiring an additional 1,381,046 shares during the period. Invesco Ltd. increased its position in Super Micro Computer by 31.6% during the second quarter. Invesco Ltd. now owns 8,639,784 shares of the company’s stock valued at $423,436,000 after acquiring an additional 2,073,978 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its position in 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 valued at $194,655,000 after acquiring an additional 200,109 shares during the last quarter. Institutional investors own 84.06% of the company’s stock.

Super Micro Computer Stock Performance

The company has a market cap of $18.42 billion, a P/E ratio of 23.02, a P/E/G 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. The business has a fifty day simple moving average of $31.34 and a two-hundred day simple moving average of $41.26.

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.