Super Micro Computer, Inc. (NASDAQ:SMCI) shares dropped by more than 7% on Thursday as investors retreated from AI hardware and server stocks, contributing to a broader sector decline. The stock was down 7.21% at $24.95 during trading, according to Benzinga Pro data. The Nasdaq Composite fell 1.42%, while the S&P 500 decreased by 0.41%. The technology sector also lagged, recording a 2.5% loss.
Technical Analysis
Supermicro's stock is currently trading 13.6% below its 20-day simple moving average (SMA) of $28.98 and 26.7% below its 200-day SMA of $34.18. Analysts noted that the 20-day SMA is below the 50-day SMA, indicating that recent rallies have been met with selling pressure rather than sustained buying interest. The company's next major earnings report is anticipated on August 4, 2026, with earnings per share estimated at 69 cents, up from 41 cents year-over-year, and revenue projected at $11.73 billion, an increase from $5.76 billion year-over-year.
Analyst Outlook
The stock holds a Hold rating among analysts, with an average price target of $33.67, ranging from a high of $44.00 to a low of $22.00. Recent analyst actions include Citigroup raising its forecast to $33.00 and Mizuho maintaining a neutral stance while increasing its price target to $44.00.
The decline in Supermicro shares may affect technology-focused exchange-traded funds (ETFs) due to the company's significant weight in these funds, potentially leading to automatic buying or selling as investors adjust their positions.
Investors will watch for the upcoming earnings report on August 4, 2026, which could provide further insights into the company's performance amid ongoing market volatility.