Super Micro Computer, Inc. (NASDAQ:SMCI) stock traded lower Thursday as investors weighed renewed supply-chain concerns across AI hardware, profit-taking after the prior session’s rally and lingering scrutiny around the company’s supply chain.
The decline came during a broader risk-off session, with the S&P 500 down 1.3% and the Technology sector falling 3.1%, making it the weakest of the 11 sectors.
ˆ Super Micro Computer shares are sliding. Why is SMCI stock dropping?
Supply Bottlenecks Pressure AI Hardware Sentiment
AI infrastructure peer Lam Research Corp. (NASDAQ:LRCX) highlighted near-term supply-chain constraints that could push some December-quarter shipments into March.
Lam still posted a record 40.2% operating margin and guided December-quarter revenue to $8.2 billion-$9 billion, compared with the $8.53 billion estimate. Its warning that shipment timing could shift revenue into a later quarter added pressure to sentiment around hardware suppliers tied to data center expansion.
Super Micro Pulls Back After Revenue-Guide Rally
Super Micro shares fell more than 6% as investors took profits following a gain of more than 10% in the previous session.
The earlier rally followed Super Micro’s decision to raise its preliminary fiscal first-quarter 2027 revenue outlook to $18.5 billion-$19.5 billion.
The stock also continued to face concerns tied to a federal export-control investigation involving its supply chain.
Super Micro Expands Nvidia Partnership
Super Micro also expanded its partnership with NVIDIA Corp. (NASDAQ:NVDA) by introducing a new Vera CPU rack designed to support more AI workloads while using less data center space and power.
The company said customers can deploy the system on its own or alongside Nvidia’s Vera Rubin platform, giving them another option to expand AI infrastructure while potentially reducing deployment and operating costs.
Analysts Remain Mixed
Super Micro carries a Buy consensus rating with an average price target of $38, with forecasts ranging from $31 to $57 across 26 analysts.
Rosenblatt maintained a Buy rating and raised its forecast to $57 on Oct. 21, after maintaining a $51 target on Oct. 16. Citigroup maintained Neutral and raised its forecast to $45 on Oct. 8.
Top ETF Exposure
The YieldMax SMCI Option Income Strategy ETF (NYSE:SMCY) carries a 37.67% weighting in SMCI, while the ERShares Entrepreneurs ETF (NASDAQ:ENTR) holds 3.74% and the Inspire Capital Appreciation ETF (NYSE:RISN) holds 3.84%.
Because Super Micro carries meaningful weight in these funds, significant ETF inflows or outflows can translate into corresponding buying or selling of the stock.
SMCI Price Action
Super Micro Computer shares were down 5.62% at $33.57 at the time of publication on Thursday, according to Benzinga Pro data.
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