Super Micro Computer Stock Plummets -11% With 5-Day Losing Streak
Super Micro Computer (SMCI) stock hit day 5 of a continuous streak of days with losses, with cumulative losses over this period amounting to a -11% return. The company has lost about $3.6 Bil in value over the last 5 days, with its current market capitalization at about $29 Bil. The stock remains 2.9% above its value at the end of 2024. This compares with year-to-date returns of 15.9% for the S&P 500.
Super Micro Computer recently experienced a sharp decline as investors digested Q1 earnings that missed estimates ($0.35 EPS vs. $0.46 expected) amid intensified competition and narrowing gross margins (9.5%). Concerns over negative free cash flow fueled skepticism about sustained profitability despite ambitious AI infrastructure growth forecasts.
What is the point? Sustained weakness can be more than noise. It often signals shifting sentiment or deeper concerns. A multi-day losing streak may warn of further downside, or present an opportunity to buy if fundamentals are intact. Our take: There is a near-equal mix of good and bad in SMCI stock given its overall Moderate operating performance and financial condition. This is aligned with the stock’s Moderate valuation because of which we think it is Fairly Priced (see Buy or Sell SMCI).
For quick background, SMCI provides high-performance modular server and storage solutions, including servers, blades, racks, and networking devices for enterprise data centers, cloud computing, AI, 5G, and edge computing markets.
Comparing SMCI Stock Returns With The S&P 500
The following table summarizes the return for SMCI stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | SMCI | S&P 500 |
|---|---|---|
| 1D | -3.0% | -0.2% |
| 5D (Current Streak) | -11.3% | -0.4% |
| 1M (21D) | -10.6% | 1.2% |
| 3M (63D) | -30.1% | 3.2% |
| YTD 2025 | 2.9% | 15.9% |
| 2024 | 7.2% | 23.3% |
| 2023 | 246.2% | 24.2% |
| 2022 | 86.8% | -19.4% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: SMCI Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 105 S&P constituents with 3 days or more of consecutive gains and 41 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 31 | 31 |
| 4D | 41 | 4 |
| 5D | 24 | 4 |
| 6D | 3 | 2 |
| 7D or more | 6 | 0 |
| Total >=3 D | 105 | 41 |
Key Financials for Super Micro Computer (SMCI)
Last 2 Fiscal Years:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenues | $15.0 Bil | $22.0 Bil |
| Operating Income | $1.2 Bil | $1.3 Bil |
| Net Income | $1.2 Bil | $1.0 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ4 | 2026 FQ1 |
|---|---|---|
| Revenues | $5.8 Bil | $5.0 Bil |
| Operating Income | $228.4 Mil | $182.3 Mil |
| Net Income | $195.2 Mil | $168.3 Mil |
The losing streak SMCI stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.