Super Micro Computer (NASDAQ:SMCI) Shares Down 8.4% – Here’s Why
by Sarita Garza · The Markets DailySuper Micro Computer, Inc. (NASDAQ:SMCI – Get Free Report)’s share price traded down 8.4% during trading on Wednesday. The stock traded as low as $35.63 and last traded at $35.78. 31,999,473 shares were traded during mid-day trading, a decline of 27% from the average session volume of 43,613,426 shares. The stock had previously closed at $39.07.
Trending Headlines about Super Micro Computer
Here are the key news stories impacting Super Micro Computer this week:
- Positive Sentiment: Digi Power X is using Supermicro servers equipped with Nvidia’s latest Blackwell chips to provide enterprise AI-computing capacity through its NeoCloudz platform. The arrangement supports demand for Supermicro’s rack-scale systems and AI infrastructure. Digi Power X pairs owned power infrastructure with Supermicro GPUs to serve enterprise AI customers
- Positive Sentiment: Supermicro expanded its Open Compute Project portfolio with rack-scale AI and HPC systems, 48V power, networking, liquid cooling and infrastructure-management software. The broader offering could help shorten deployment times for high-density AI data centers. Supermicro Expands Integrated Open Compute Project Portfolio
- Neutral Sentiment: Analyst opinions remain mixed. Zacks Research moved SMCI from “Strong Buy” to “Hold,” while other recent coverage has highlighted rising earnings estimates, a sizable order pipeline and long-term exposure to the AI-server market.
- Negative Sentiment: Shares are facing profit-taking after a strong 2026 rally, with investors questioning whether projected AI-driven growth is already reflected in the valuation. Weakness across hardware and server stocks, including declines at Dell Technologies and Hewlett Packard Enterprise following a Barclays downgrade, is adding sector pressure. Dell, HPE and Super Micro sector weakness
- Negative Sentiment: Reports of insider selling are weighing on sentiment. Investors are also revisiting export-control risks after a former contractor reportedly pleaded guilty to conspiring to illegally export restricted AI technology to China, potentially raising concerns about compliance and reputational exposure. Why Super Micro stock is falling
Analyst Upgrades and Downgrades
Several equities research analysts recently issued reports on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Super Micro Computer in a research note on Monday, September 21st. Barclays set a $39.00 price objective on Super Micro Computer and gave the stock an “equal weight” rating in a research report on Wednesday, August 12th. Mizuho lifted their target price on Super Micro Computer from $35.00 to $43.00 and gave the company a “neutral” rating in a research note on Tuesday, October 6th. Citigroup reiterated a “neutral” rating and issued a $45.00 target price (up from $39.00) on shares of Super Micro Computer in a report on Thursday, October 8th. Finally, Sanford C. Bernstein set a $42.00 price target on shares of Super Micro Computer in a research report on Thursday, August 13th. Four research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $43.07.
View Our Latest Stock Report on SMCI
Super Micro Computer Stock Down 8.4%
The business’s 50 day simple moving average is $38.60 and its 200-day simple moving average is $33.24. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. The company has a market cap of $23.51 billion, a price-to-earnings ratio of 11.18, a price-to-earnings-growth ratio of 0.77 and a beta of 2.02.
Super Micro Computer (NASDAQ:SMCI – Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, topping analysts’ consensus estimates 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 business had revenue of $11.12 billion for the quarter, compared to the consensus estimate of $11.60 billion. During the same period in the prior year, the business posted $0.31 earnings per share. Super Micro Computer’s revenue for the quarter 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. Sell-side analysts expect that Super Micro Computer, Inc. will post 3.94 earnings per share for the current year.
Insider Transactions at Super Micro Computer
In other Super Micro Computer news, Director Chiu-Chu Liang sold 100,000 shares of the business’s stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through 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 company’s stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the completion of the transaction, the chief executive officer directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 400,000 shares of company stock worth $16,442,000 in the last 90 days. Corporate insiders own 16.10% of the company’s stock.
Institutional Investors Weigh In On Super Micro Computer
Several large investors have recently made changes to their positions in SMCI. SHP Wealth Management bought a new position in shares of Super Micro Computer in the 4th quarter valued at approximately $29,000. Banque Cantonale Vaudoise acquired a new stake in Super Micro Computer in the 1st quarter worth approximately $37,000. TOP Private Wealth LLC. bought a new stake in Super Micro Computer during the second quarter worth approximately $42,000. Comprehensive Financial Planning Inc. PA bought a new stake in Super Micro Computer during the second quarter worth approximately $43,000. Finally, Contravisory Investment Management Inc. bought a new stake in Super Micro Computer during the second quarter worth approximately $49,000. Institutional investors own 84.06% of the company’s stock.
Super Micro Computer Company Profile
Super Micro Computer, Inc develops and sells application-optimized server and storage systems for data centers, cloud computing, enterprise IT, artificial intelligence, and other demanding computing environments. The company offers complete computing platforms as well as modular components, allowing customers to configure systems for specific performance, power, and workload requirements.
Its product portfolio includes server and storage systems, workstations, networking equipment, rack-scale solutions, GPU and AI systems, and related software and services.