Super Micro Computer: Continues Surging Higher (Technical Analysis)

Summary:

• I am raising my outlook for Super Micro Computer, Inc. (SMCI) to a “strong buy” due to improved stability and attractive valuation prospects.
• Despite recent turmoil and the resignation of Ernst & Young, SMCI avoided delisting and now has a clearer path forward with NASDAQ’s extension.
• SMCI’s forward PE ratio of 15.54x is cheaper than most competitors, suggesting significant upside potential as we move into 2025.
• Investors should remain cautious due to pending 10-Q and 10-K filings, but the bullish momentum and favorable valuation metrics support a strong buy rating.

When I last covered Super Micro Computer, Inc. (NASDAQ:SMCI) on November 8th, 2024 with my article “Super Micro Computer: Anatomy of a Stock Collapse”, the stock was in freefall after auditor Ernst & Young resigned and

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SMCI, NVDA, DELL 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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