Super Micro Trading Volume Slumps 47 to 103rd Rank as Short Positions Drop 2.58 Month-on-Month

On August 21, 2025, Super Micro Computer (SMCI) traded with a daily volume of $0.70 billion, a 47.31% decline from the prior day, ranking 103rd in market activity. The stock closed down 0.70% at $41.86. Short interest in SMCI totaled 89.54 million shares, representing 17.92% of the float, reflecting a 2.58% monthly decline in short positions. The short interest ratio stood at 2.0, indicating a relatively low level of bearish sentiment compared to broader market benchmarks.

The reduction in short interest suggests cautious optimism among investors, contrasting with the broader market's average short interest percentages. Institutional investors, including Jane Street Group and Hsbc Holdings, disclosed short positions in SMCI, though the decline in short volume implies a shift in market dynamics. Analysts noted mixed signals: while some firms upgraded price targets, others maintained "Hold" ratings, reflecting uncertainty around hyperscaler demand and earnings performance. Recent insider sales by key executives, including 200,000 shares sold by CEO Charles Liang, added to market volatility.

A backtested strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 1.98% average daily return, with a total return of 7.61% over 365 days. The strategy’s Sharpe ratio of 0.94 highlighted favorable risk-adjusted returns, though a maximum drawdown of -29.16% underscored its vulnerability during market downturns.