TLDR
- SMCI stock declined 0.55% to $41.94 while the broader market improved
- The company has seen an 11.98% loss over the previous month
- Analysts project earnings of $0.52 per share, a 22.39% year-over-year decline
- Full-year estimates show expected earnings of $2.56 per share with revenue of $23.77 billion
- SMCI tumbled 9.6% on March 18, posting the heaviest losses in the S&P 500
Super Micro Computer, a prominent server technology company, has recently experienced notable stock fluctuations amid broader market movements. This analysis examines the company’s recent performance, analyst projections, and market context to provide investors with a comprehensive understanding of SMCI’s current position.
In the most recent trading session ending March 17, 2025, Super Micro Computer (SMCI) closed at $41.94. This represented a 0.55% decrease from the previous trading day’s close.
This performance lagged behind the S&P 500, which posted a daily gain of 0.64%. During the same period, the Dow gained 0.85%, while the tech-heavy Nasdaq added 0.31%.
Looking at a broader timeframe, SMCI shares have declined by 11.98% over the previous month. This performance trailed both the Computer and Technology sector, which lost 11.22%, and the S&P 500, which fell by 7.69%.
The following day on March 18, SMCI stock faced even steeper declines. Shares tumbled 9.6%, making it the worst-performing stock in the S&P 500 that day.
The broader market also declined on March 18, with the S&P 500 losing 1.1%, the Dow slipping 0.6%, and the Nasdaq closing 1.7% lower. This marked the end of two consecutive positive sessions for major U.S. equity indexes.
Investors focused on upcoming earnings report
Investors and analysts are particularly focused on Super Micro Computer’s upcoming earnings report. Current projections anticipate earnings of $0.52 per share, which would represent a year-over-year decline of 22.39%.
Simultaneously, consensus estimates project quarterly revenue of $5.34 billion. If achieved, this would reflect a 38.58% increase from the equivalent quarter last year.
For the full fiscal year, Zacks Consensus Estimates project earnings of $2.56 per share. This would demonstrate a 15.84% increase from the preceding year.
Revenue projections for the full year stand at $23.77 billion, which would represent a 59.06% increase year-over-year.
From a valuation perspective, Super Micro Computer currently trades at a Forward P/E ratio of 16.47. This represents a premium compared to its industry’s average Forward P/E of 12.72.
SMCI is part of the Computer-Storage Devices industry within the broader Computer and Technology sector. This industry currently holds a Zacks Industry Rank of 81, placing it in the top 33% of all 250+ industries ranked.
The recent pressure on SMCI stock appears connected to broader concerns about the artificial intelligence (AI) industry. On March 18, semiconductor giant Nvidia unveiled its latest generation of AI chips at a major conference.
Macroeconomic uncertainty
Wedbush analysts suggested that Nvidia’s event might provide a reality check on AI. They noted that macroeconomic uncertainty could create near-term headwinds for the industry.
However, these analysts also emphasized that these challenges would not derail massive long-term investments in AI technology.
Super Micro Computer currently sports a Zacks Rank of #4 (Sell). This ranking system considers recent estimate changes and their correlation with near-term stock prices.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a documented history of outperformance. Notably, #1 ranked stocks have returned an average annual gain of +25% since 1988.
Over the last 30 days, the Zacks Consensus EPS estimate for SMCI has remained unchanged, suggesting analyst sentiment has been stable despite the recent stock decline.
Investors interested in the computer hardware sector may wish to monitor SMCI’s performance in the coming weeks, particularly as the company approaches its next earnings announcement.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
