Why Super Micro (SMCI) Shares Are Trading Lower Today

What Happened?

Shares of server solutions provider Super Micro (NASDAQ:SMCI) fell 3.7% in the morning session after a Citi analyst cut the company's price target, while broader market weakness added to the negative pressure. 

Five-star Citi analyst Asiya Merchant reiterated a "Hold" rating on Super Micro Computer's stock but lowered the price outlook. This move followed other bearish coverage from the previous week, when a Goldman Sachs analyst maintained a "Sell" rating and also cut their price target. Compounding the issue, the wider stock market also fell. The downturn was linked to investor reactions after a threat was made to impose tariffs on eight European countries, which pushed the major indices lower.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Super Micro? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Super Micro’s shares are extremely volatile and have had 66 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock dropped 5.5% on the news that Goldman Sachs initiated coverage of the stock with a "Sell" rating and a $26 price target. 

The analyst cited ongoing pressure on the company's profit margins and limited clarity on its future profitability, despite strong growth in its AI-server business. The bank noted that margins had been cut in half over the previous three years to 9.5%. Goldman Sachs also believed Super Micro's position between powerful suppliers and a few large customers left it unable to set its own prices. The firm's earnings per share forecasts for Super Micro were 10% below the general expectation from other analysts.

Super Micro is up 1.9% since the beginning of the year, but at $31.56 per share, it is still trading 48% below its 52-week high of $60.71 from July 2025. Investors who bought $1,000 worth of Super Micro’s shares 5 years ago would now be looking at an investment worth $9,370.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave, it’s free.