TLDR
- SMCI dropped 2.2% to $36.58 after quarterly revenue of $11.12 billion missed the $11.60 billion consensus estimate
- Revenue was still up 93% year over year, and the company beat EPS estimates
- New orders topped $60 billion, with fiscal 2027 revenue guidance set at $65 billion to $72 billion
- Technical indicators currently show a Buy signal, with SMCI up 25% year to date
- Wall Street holds a consensus “Hold” rating with an average price target of $42.13
Super Micro Computer (SMCI) fell 2.2% to $36.58 on Wednesday after the company posted record quarterly revenue that still came in short of what Wall Street was expecting.
Super Micro Computer, Inc., SMCI
The stock touched a low of $35.72 during the session. Volume came in at around 35 million, roughly 23% below the average.
SMCI reported quarterly revenue of $11.12 billion, up 93.2% year over year. That sounds great on paper, but analysts had penciled in $11.60 billion, and the miss was enough to spook investors.
The company did beat earnings per share estimates, which offered some comfort. But when revenue falls short at this scale, the market tends to focus on that first.
Record Backlog and Bold Guidance
Despite the revenue miss, Super Micro had some big numbers to point to. The company disclosed more than $60 billion in new orders and set fiscal 2027 revenue guidance of $65 billion to $72 billion.
That guidance reflects continued demand for AI infrastructure and data center systems, areas where Super Micro has been positioning itself aggressively.
Liquid-cooling technology and full-stack data center solutions are among the products the company is leaning on to compete. Both Hewlett Packard Enterprise and Dell remain direct competitors in this space.
Investor concerns go beyond the revenue miss. Inventory management, customer concentration, and ongoing legal and governance issues continue to weigh on sentiment.
Some of the Wednesday decline was also put down to profit-taking. SMCI is still up 25% year to date, so sellers had gains to lock in.
What Analysts Are Saying
Wall Street’s response after the earnings report was mostly measured. Mizuho set a $35.00 price target with a neutral rating. Citigroup raised its target from $33.00 to $39.00, also with a neutral rating. Stifel Nicolaus set a $42.00 target. Bank of America kept an underperform rating.
Of the 18 analysts tracked, four rate SMCI a Buy, 12 say Hold, and two have a Sell rating. The average price target sits at $42.13, which implies upside from current levels.
Technical indicators tell a different story from the analyst consensus. According to TipRanks data, SMCI carries an overall Buy signal, backed by 14 bullish, five neutral, and three bearish readings.
The stock is trading above its 20-day exponential moving average of $33.04 and its 50-day exponential moving average of $31.60. Both are considered bullish signals.
The Williams %R indicator suggests the stock is not overbought. The Rate of Change reading stands at 45.56%, which also points to an uptrend.
SMCI’s market cap sits at $22 billion. The PE ratio is 11.43, which is relatively low compared to some peers in the AI infrastructure space.
The average price target from TipRanks’ consensus is $40.85, implying about 11.7% upside from Wednesday’s closing price of $36.58.
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