Super Micro Computer: A Top Rebound Play For 2025 (Rating Upgrade)

Summary:

• Super Micro Computer’s shares have lost most of its early 2024 gains, but sentiment improved after the firm successfully submitted a compliance plan to Nasdaq.
• The AI hardware company faces strong growth prospects in the liquid-cooled server racks market, driven by AI applications and data center CapEx spending.
• Risks remain due to financial reporting delays and a potential delisting, but a moderate P/E ratio offers a revaluation opportunity if issues are resolved.
• Improving gross margins in FY 2025 could significantly enhance Super Micro Computer’s valuation, despite recent exclusion from the Nasdaq-100 index.

Super Micro Computer (NASDAQ:SMCI) (NEOE:SMCI:CA) is looking back on a painful year in 2024 which saw the share price first rise meteorically, but dropping like a rock after the company ran into filing issues with the Securities and

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SMCI, NVDA, AMD, TSM either through stock ownership, options, or other derivatives. 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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