Super Micro Computer: A Lesson In Falling Knives

Summary:

• Super Micro Computer continues to experience significant stock price volatility due to disputed financial practices.
• Despite concerns, SMCI reported impressive Q1 FY 2025 results with $5.9 billion in revenue and $365M in free cash flow, driven by AI growth.
• The appointment of a new independent auditor and a favorable special committee review have helped stabilize the stock, but risks remain with ongoing investigations.
• I maintain a Hold rating for SMCI, emphasizing the need for a margin of safety and caution due to potential de-listing and delayed financials.

I originally covered Super Micro Computer (NASDAQ:SMCI) in early September. At the time, the stock had experienced a 20% drop from the release of a report by Hindenburg Research.

Priced around $55 when the report came

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