Super Micro Computer (NASDAQ:SMCI) Shares Up 13.8% on Better-Than-Expected Earnings

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price was up 13.8% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $34.94 and last traded at $33.76. Approximately 115,096,313 shares were traded during mid-day trading, an increase of 220% from the average daily volume of 35,984,230 shares. The stock had previously closed at $29.67.

The company reported $0.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.49 by $0.20. The business had revenue of $12.68 billion for the quarter, compared to the consensus estimate of $10.34 billion. Super Micro Computer had a net margin of 3.11% and a return on equity of 13.22%. The business’s revenue was up 123.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.59 EPS. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS.

Trending Headlines about Super Micro Computer

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

Analysts Set New Price Targets

SMCI has been the topic of several research analyst reports. Wedbush cut their price objective on Super Micro Computer from $48.00 to $42.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Sanford C. Bernstein dropped their target price on Super Micro Computer from $42.00 to $37.00 and set a “market perform” rating for the company in a research report on Wednesday. Zacks Research raised shares of Super Micro Computer from a “strong sell” rating to a “hold” rating in a research report on Monday, December 8th. KGI Securities upgraded shares of Super Micro Computer from a “neutral” rating to an “outperform” rating and set a $60.00 price objective for the company in a report on Wednesday, November 5th. Finally, Raymond James Financial cut their target price on shares of Super Micro Computer from $50.00 to $35.00 and set an “outperform” rating on the stock in a research note on Wednesday. Eight analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $44.13.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of Super Micro Computer by 4.1% in the 3rd 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 in the last quarter. Geode Capital Management LLC grew its stake in shares of Super Micro Computer by 2.7% during the second quarter. Geode Capital Management LLC now owns 13,752,581 shares of the company’s stock worth $671,316,000 after purchasing an additional 364,411 shares in the last quarter. Disciplined Growth Investors Inc. MN increased its holdings in 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 last quarter. Invesco Ltd. raised its stake in 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 in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in Super Micro Computer by 5.3% in 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 buying an additional 200,109 shares in the last quarter. Institutional investors and hedge funds own 84.06% of the company’s stock.

Super Micro Computer Price Performance

The stock has a fifty day simple moving average of $31.34 and a 200-day simple moving average of $41.26. The company has a market capitalization of $18.42 billion, a PE ratio of 23.02, a P/E/G ratio of 0.70 and a beta of 1.53. The company has a current ratio of 1.70, a quick ratio of 2.95 and a debt-to-equity ratio of 0.67.

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.