Super Micro Computer Stock Deserved The Slump

Summary:

  • In mid-September 2024, I downgraded Super Micro Computer, Inc. once more, citing concerns about the company’s potentially “shaky situation” despite the hefty dip it experienced since early 2024.
  • With the stock down 30% in a single day, SMCI stock now looks relatively cheap. However, I strongly advise against buying this dip.
  • In the case of Super Micro, waning confidence in management is likely to lead to a sustained discount in the stock’s valuation.
  • SMCI’s likelihood of exceeding current forecasts has, in my opinion, noticeably decreased. Additionally, it’s crucial to receive the company’s 10-K, which we have yet to see.
  • I believe that the really difficult times for Super Micro stock could still lie ahead. So for now, I am watching developments from the sidelines and warning against buying into today’s downturn.

Businessman

D-Keine

Intro & Thesis

I began covering Super Micro Computer, Inc. (NASDAQ:SMCI) stock here on Seeking Alpha in early December 2022, initially assigning a “Strong Buy” rating. However, by June 2023, I downgraded it to a “Hold.” At one point, I reconsidered my stance and upgraded the


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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