Super Micro Computer (NASDAQ:SMCI) Price Target Cut to $40.00 by Analysts at Needham & Company LLC

Super Micro Computer (NASDAQ:SMCI) had its price objective decreased by Needham & Company LLC from $51.00 to $40.00 in a research note issued to investors on Wednesday morning, Marketbeat reports. Needham & Company LLC currently has a buy rating on the stock.

SMCI has been the subject of several other research reports. The Goldman Sachs Group set a $26.00 price objective on shares of Super Micro Computer and gave the stock a “sell” rating in a research note on Tuesday, January 13th. KGI Securities raised Super Micro Computer from a “neutral” rating to an “outperform” rating and set a $60.00 target price on the stock in a research report on Wednesday, November 5th. Wedbush cut their price target on shares of Super Micro Computer from $48.00 to $42.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Raymond James Financial cut their price target on Super Micro Computer from $53.00 to $50.00 and set an “outperform” rating on the stock in a research report on Wednesday, November 5th. Finally, Wall Street Zen cut shares of Super Micro Computer from a “hold” rating to a “sell” rating in a research note on Saturday, November 15th. Eight investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $45.31.

Super Micro Computer Price Performance

Shares of SMCI opened at $33.76 on Wednesday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 2.95 and a current ratio of 5.39. The company has a 50 day moving average price of $31.38 and a 200-day moving average price of $41.34. Super Micro Computer has a fifty-two week low of $27.60 and a fifty-two week high of $66.44. The stock has a market capitalization of $20.15 billion, a PE ratio of 25.19, a PEG ratio of 0.61 and a beta of 1.53.

Super Micro Computer (NASDAQ:SMCI) last issued its quarterly earnings data on Tuesday, February 3rd. The company reported $0.69 EPS for the quarter, topping analysts’ consensus estimates of $0.49 by $0.20. Super Micro Computer had a net margin of 3.11% and a return on equity of 13.52%. The company had revenue of $12.68 billion during the quarter, compared to the consensus estimate of $10.34 billion. During the same quarter in the previous year, the firm posted $0.59 earnings per share. Super Micro Computer’s revenue for the quarter was up 123.4% compared to the same quarter last year. Super Micro Computer has set its Q3 2026 guidance at 0.600- EPS. Equities analysts predict that Super Micro Computer will post 1.86 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Anfield Capital Management LLC acquired a new stake in Super Micro Computer in the 2nd quarter worth about $25,000. Twin Peaks Wealth Advisors LLC acquired a new stake in shares of Super Micro Computer in the second quarter worth approximately $25,000. Flagship Harbor Advisors LLC acquired a new stake in shares of Super Micro Computer in the fourth quarter worth approximately $25,000. Armstrong Advisory Group Inc. purchased a new stake in shares of Super Micro Computer during the third quarter worth approximately $29,000. Finally, Concord Wealth Partners raised its stake in Super Micro Computer by 2,564.1% in the 4th quarter. Concord Wealth Partners now owns 1,039 shares of the company’s stock valued at $30,000 after purchasing an additional 1,000 shares during the last quarter. Institutional investors and hedge funds own 84.06% of the company’s stock.

Key Super Micro Computer News

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

• Positive Sentiment: Q2 beat and raised guidance — SMCI reported $12.7B revenue (≈123% Y/Y) and $0.69 EPS, topping estimates, and raised quarterly and full-year revenue targets (next quarter revenue ≥ $12.3B; FY revenue raised toward $40B), which is the primary catalyst for the rally. Supermicro Announces Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: AI/hyperscale demand and DCBBS progress — management says hyperscale customers and Data Center Building Block Solutions (DCBBS) are accelerating; DCBBS carries much higher gross margins and is expected to be a growing profit contributor, supporting optimism about sustainable revenue. SMCI Soars Post-Earnings: Head Fake, Or Sign of True Recovery?
• Positive Sentiment: Unusual options and heavy volume — large call buying (≈390,768 calls, ~51% above typical) and extremely high share volume indicate speculative/levered bullish positioning that magnified today’s upside.
• Neutral Sentiment: Analyst support mixed — some firms (e.g., Rosenblatt) reiterated Buy ratings, while consensus price targets still imply upside (~$45 consensus), leaving room for further gains if execution holds.
• Negative Sentiment: Sharp margin pressure — adjusted gross margin fell to ~6.3%, a large sequential and Y/Y decline; management flagged near-term margin pressure, which raises concern about durability of profitability. SMCI Stock Rallies 11% as AI Boom Boosts Earnings. This Remains a Worry for Super Micro.
• Negative Sentiment: Critics warn the rally may be a “trap” — several analysts/commentators point to mix-driven, low-margin large-model builder sales and argue today’s beat could mask underlying risks to margins and pricing power. SMCI stock’s post-earnings rally may be a ‘trap’ — smart money says sell
• Negative Sentiment: Analyst target cut — Needham trimmed its price target from $51 to $40 (still Buy), signaling caution about margins/earnings sustainability. SMCI – Price target lowered by Needham

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.