With a market capitalization of approximately $20.6 billion, Super Micro Computer, Inc. (SMCI) is a global technology company founded in 1993. Based in San Jose, California, the company designs and manufactures energy-efficient servers, storage systems, and networking solutions for AI, cloud computing, data centers, and enterprise infrastructure.
Shares of this tech giant have significantly lagged the broader market over the past year. SMCI has declined 37.6% during this period, while the broader S&P 500 Index ($SPX) has rallied nearly 13.5%. The trend has persisted in 2026, with the stock rising only 1.1% year-to-date, compared with the index's 12.3% gain over the same period.
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Narrowing the comparison, SMCI has also trailed the State Street Technology Select Sector SPDR ETF (XLK), which has climbed 20.1% over the past year and 22.6% year-to-date.
www.barchart.com On Nov. 3, Super Micro Computer reported its Q1 FY2027 results, sending shares up 3.1% as both revenue and earnings exceeded analyst expectations. Net sales surged 297.5% year over year to a record $19.95 billion, reflecting strong demand for AI infrastructure. Non-GAAP net income per share jumped 417.1% to $1.81, while adjusted EBITDA climbed to $2.23 billion from $335 million. However, non-GAAP gross margin declined to 12.8% from 17.5% in the previous quarter.
Looking ahead, Super Micro Computer raised its fiscal 2027 revenue guidance to $72 billion to $82 billion from its previous outlook of $65 billion to $72 billion. For Q2 FY2027, the company expects net sales of $19.5 billion to $21.5 billion and non-GAAP diluted EPS of $1.66 to $1.90. The quarterly revenue forecast also exceeded analysts' expectations of $17.14 billion.
For the current fiscal year, ending in June 2027, analysts expect SMCI’s EPS to increase 27.9% to $4.17 on a diluted basis. The company has beaten the consensus EPS estimate in each of the last four quarters, which is impressive.
Among the 20 analysts covering SMCI stock, the consensus is a “Hold.” That's based on three "Strong Buys," two "Moderate Buys," 12 "Holds," one "Moderate Sell," and two "Strong Sells."
www.barchart.com This configuration is more bearish than it was a month ago, when the stock had four "Strong Buy" recommendations.
On Nov. 4, 2026, Raymond James analyst Simon Leopold maintained a “Buy” rating on Super Micro Computer and raised his price target to $65 from $48.
The mean price target of $43.94 represents a 48.4% premium to SMCI's current share price, while the Street-high price target of $65 suggests potential upside of 119.6%.
On the date of publication, Abhishek Bhuyan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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