Super Micro Computer (SMCI) Stock Surges as Insiders Buy and Analysts Upgrade

TLDR

• SMCI closed at $32.16 Thursday, up 8.25%, on volume 47% above its three-month average
• Quarterly net revenue came in at $12.68 billion, with AI platforms driving over 90% of sales
• Full-year guidance raised to at least $40 billion, roughly $2.13 billion above Wall Street estimates
• Stock upgraded to “strong buy” with margin expansion cited as the key reason to own shares
• CEO and CFO both bought shares in early February at around $33.33 per share

Super Micro Computer closed Thursday at $32.16, up 8.25%, as investors reacted to a raised revenue outlook, strong earnings, and a fresh analyst upgrade all landing at once.

Super Micro Computer, Inc., SMCI

Volume hit 42.1 million shares, about 47% above the three-month average. The stock also reclaimed its 50-day moving average, a level closely watched by technical traders.

The move follows an earnings report showing $12.68 billion in quarterly net revenue and $400.56 million in net income. AI platforms accounted for more than 90% of total revenue.

Management lifted full-year guidance to at least $40 billion, coming in around $2.13 billion ahead of Wall Street’s expectations.

A Seeking Alpha analyst followed with a “strong buy” upgrade, shifting the conversation from revenue growth to operating leverage. The Data Center Building Block Solutions platform was flagged as the key driver of potential margin improvement.

The Insider Buying Signal

CEO Charles Liang and CFO David Weigand both bought shares in early February at an average price of around $33.33. It is a quiet but clear signal that those closest to the business think the stock is undervalued.

The forward price-to-earnings multiple sits below 17 times, which analysts describe as low for a company this embedded in AI infrastructure. Wall Street’s consensus sits at “Moderate Buy” with a mean price target of $43, implying around 35% upside from Thursday’s close.

Despite the rally, SMCI is still down nearly 45% from its October highs, a gap that more investors appear to be treating as an entry point rather than a warning sign.

What Is Driving Demand

Supermicro’s close ties with Nvidia and other major chipmakers give it early access to high-end GPUs, reinforcing its position as a preferred supplier for large-scale AI deployments.

Reports of a potential “Make in India” AI server expansion have caught investor attention, pointing to possible geographic diversification in the pipeline.

The broader market gave no help on Thursday. The S&P 500 slipped 0.28% to 6,861.89 and the Nasdaq fell 0.31% to 22,683. Among hardware peers, Dell Technologies rose 1.95% while Hewlett Packard Enterprise dipped 0.74%.

SMCI has grown 3,572% since its IPO in 2007. The current Wall Street mean price target of $43 represents roughly 35% upside from Thursday’s closing price of $32.16.

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