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San Jose, California-based Super Micro Computer, Inc. (SMCI) develops and manufactures high-performance server and storage solutions based on modular and open architecture. With a market cap of $24.6 billion, Super Micro’s operations span the United States, Europe, Asia, and internationally.
Companies worth $10 billion or more are generally described as "large-cap stocks," Super Micro fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the digital infrastructure industry. Its solutions include a range of rack mount and blade server systems and components.
Despite its strengths, SMCI has plummeted 64.1% from its all-time high of $122.90 achieved on Mar. 8. However, SMCI gained 7.7% over the past three months marginally outpacing the Global X Data Center & Digital Infrastructure ETF’s (DTCR) 7.4% gains during the same time frame.
Over the longer term, SMCI’s performance looks even more impressive. Despite the recent downturn, SMCI stock prices soared 55.4% on a YTD basis and 62% over the past 52 weeks, outpacing the DTCR’s 20.4% gains in 2024 and 25% returns over the past year.
To confirm the initial surge and the recent decline, SMCI traded above its 50-day moving average until early April. Since early August, it has consistently traded below its 200-day moving average and has remained below its 50-day moving average since mid-April, with some fluctuations.
The significant drop in SMCI's stock from its all-time high is primarily attributable to the company's failure to file its Form 10-K for the fiscal year ending Jun. 30, 2024, and Form 10-Q for Q1 2025, amidst a backdrop of ongoing corporate governance issues.
SMCI's stock prices plummeted 18.1% in the trading session after the release of its Q1 preliminary financial information on Nov. 5. The company expects its Q1 net sales to range between $5.9 billion and $6 billion, falling significantly short of analysts' estimates of approximately $6.5 billion, though still reflecting a remarkable 182% year-over-year growth. Additionally, the company's Q2 guidance also fell short of Wall Street expectations, and the absence of a timeline for filing the Form 10-K further unsettled investors’ confidence.
Super Micro Computer has significantly lagged behind its peer Arista Networks, Inc.’s (ANET) 79.9% gains on a YTD basis and 89.1% returns over the past year.
Among the 11 analysts covering SMCI stock, the consensus rating is a “Hold.” The mean price target of $50.06 represents a 13.4% premium to current price levels.
