Super Micro Option Traders Bearish Amid Share Decline

Option traders are moderately bearish on Super Micro (SMCI) with shares down 1.23%. Options volume is relatively light, with calls leading puts for a put/call ratio of 0.39, and implied volatility is higher at 57.37, suggesting an expected daily move of $1.52. Put-call skew steepened, indicating increased demand for downside protection.

Super Micro Computer Inc (SMCI) experienced a significant drop in its stock price following its Q4 2025 earnings report, which missed estimates by $156 million. The company reported net sales of $5.76 billion, adjusted earnings per share (EPS) of $0.41, and a stock price that tumbled 18.3% to close at $46.79 on August 5, 2025 [1].

Despite the earnings miss, analysts remain optimistic about SMCI's future growth prospects. The company's Chief Executive, Charles Liang, highlighted progress made in fiscal 2025, noting a 47% annual growth fueled by AI solution leadership in various sectors. Liang also expressed excitement about the new Data Center Building Block Solutions (DCBBS), which offer exceptional value to customers seeking faster data center deployment [1].

For the current quarter, SMCI guided to adjusted earnings of $0.46 per share on sales of $6.5 billion, based on the midpoint of its outlook. Wall Street was modeling earnings of $0.59 per share on sales of $6.63 billion in the fiscal first quarter ending September 30. For the current fiscal year ending next June, Supermicro expects to generate sales of at least $33 billion [1].

The company's stock is currently trading between its 52-week range of $17.25 to $66.44, with a price-to-earnings (P/E) ratio of 29.6x, suggesting a premium valuation relative to its near-term earnings growth potential [2]. Despite the recent earnings miss, analysts are optimistic about the company's future growth prospects. The company's guidance for the second half of fiscal 2026 implies a major growth inflection, leading to a rating upgrade. While the first half of the fiscal year may be challenging, the second half is expected to see a significant rebound in revenue and earnings, driven by large-scale shipments of GB200 systems for NVIDIA's Blackwell and the launch of Data Center Building Block Solutions (DCBBS), which management expects could account for 30% of the company's growth in 2H FY2026 [3].

Super Micro Computer Inc (SMCI) has a rating of 74% using Peter Lynch's P/E/Growth Investor model. The stock passes several tests, including a reasonable P/E ratio, strong balance sheet, and high inventory to sales ratio. However, it fails to meet the EPS growth rate test. SMCI is a large-cap growth stock in the computer hardware industry with a focus on strong earnings growth and a reasonable price-to-earnings ratio [2].

Reference List:
[1] https://www.investors.com/news/technology/supermicro-stock-smci-fiscal-q4-2025-earnings/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-super-micro-computer-q4-2025-earnings-miss-expectations-93CH-4171697
[3] https://seekingalpha.com/article/4814400-super-micro-computer-guidance-implies-major-growth-inflection-2h-fy2026-rating-upgrade