Super Micro Computer (NASDAQ:SMCI) Shares Gap Up – Time to Buy?

23 Oct 2026, 09:41 by Michael Walen · The Markets Daily

Super Micro Computer, Inc. (NASDAQ:SMCI – Get Free Report)’s share price gapped up before the market opened on Wednesday. The stock had previously closed at $32.47, but opened at $36.42. Super Micro Computer shares last traded at $36.22, with a volume of 23,563,688 shares.

Key Headlines Impacting Super Micro Computer

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

Positive Sentiment: Supermicro raised preliminary fiscal first-quarter 2027 revenue guidance to $18.5 billion-$19.5 billion, up from its previous $14.5 billion-$15.5 billion range and above the roughly $14.9 billion analyst consensus. Management also expects gross margins to exceed its earlier outlook, suggesting stronger demand and potentially better profitability. Reuters article
Positive Sentiment: A record order backlog and continued spending on AI data centers support the view that Supermicro could benefit from the next wave of AI infrastructure investment. The update also helped ease concerns that AI server demand was weakening. Supermicro AI spending article
Positive Sentiment: The company introduced a liquid-cooled 256-NVIDIA-Vera-CPU rack for large-scale agentic AI workloads and is collaborating with Nokia and NVIDIA on AI-enabled 5G networks. These products broaden Supermicro’s opportunity beyond conventional data-center servers. NVIDIA Vera CPU rack announcement
Neutral Sentiment: Analyst sentiment improved, including a new Buy rating, while Supermicro’s relatively low valuation compared with certain AI-server peers may attract value-oriented investors. However, the stock’s high volatility makes the valuation discount difficult to interpret. Finbold analyst rating article
Negative Sentiment: Investors are taking profits after the sharp rally and remain concerned about supply-chain constraints, cash requirements and ongoing scrutiny of Supermicro’s operations and board review. Those risks could limit how quickly the company converts its backlog into profitable sales. Benzinga supply concerns article

Analyst Ratings Changes

A number of research firms have recently issued reports on SMCI. Stifel Nicolaus set a $42.00 target price on shares of Super Micro Computer in a research note on Wednesday, August 12th. Bank of America reissued an “underperform” rating on shares of Super Micro Computer in a report on Wednesday, August 12th. Northland Securities set a $36.00 price target on Super Micro Computer in a research report on Wednesday, July 22nd. Mizuho raised their price target on Super Micro Computer from $35.00 to $43.00 and gave the company a “neutral” rating in a report on Tuesday, October 6th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Super Micro Computer in a report on Monday, September 21st. Four research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Super Micro Computer currently has a consensus rating of “Hold” and a consensus target price of $43.07.

View Our Latest Stock Analysis on Super Micro Computer

Super Micro Computer Trading Down 5.2%

The business’s fifty day simple moving average is $38.72 and its 200 day simple moving average is $33.80. The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65. The stock has a market cap of $22.15 billion, a P/E ratio of 10.54, a price-to-earnings-growth ratio of 0.69 and a beta of 2.02.

Super Micro Computer (NASDAQ:SMCI – Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, beating the consensus estimate of $0.92 by $0.78. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The firm had revenue of $11.12 billion during the quarter, compared to analysts’ expectations of $11.60 billion. During the same quarter last year, the company posted $0.31 EPS. The company’s quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, analysts expect that Super Micro Computer, Inc. will post 3.94 EPS for the current year.

Insider Buying and Selling

In related news, Director Chiu-Chu Liang sold 100,000 shares of the business’s stock in a transaction that occurred 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 completion of the transaction, the director owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 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 that occurred on 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 completion of the transaction, the chief executive officer owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This trade represents a 22.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 400,000 shares of company stock valued at $16,442,000. 16.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Super Micro Computer

A number of institutional investors and hedge funds have recently made changes to their positions in the company. James Investment Research Inc. acquired a new position in Super Micro Computer during the 3rd quarter valued at about $212,000. Inspire Investing LLC boosted its stake in shares of Super Micro Computer by 29.1% in the 3rd quarter. Inspire Investing LLC now owns 247,468 shares of the company’s stock valued at $10,164,000 after purchasing an additional 55,806 shares during the last quarter. Yousif Capital Management LLC grew its position in shares of Super Micro Computer by 6.6% during the 3rd quarter. Yousif Capital Management LLC now owns 54,980 shares of the company’s stock worth $2,258,000 after buying an additional 3,381 shares during the period. Brookstone Capital Management acquired a new stake in shares of Super Micro Computer during the 3rd quarter worth approximately $1,462,000. Finally, Root Financial Partners LLC acquired a new stake in shares of Super Micro Computer during the 3rd quarter worth approximately $55,000. Institutional investors own 84.06% of the company’s stock.

About Super Micro Computer

(Get Free Report)

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.