Super Micro Computer: A Textbook Strong Buy Opportunity

On the Pulse
14K Followers
(7min)

Summary

  • Super Micro Computer, Inc. stock dropped over 20% after 4Q24 earnings, despite strong sales growth and profitability.
  • Super Micro announced a ten-for-one stock split, making the stock more affordable for investors.
  • Sales explosion in AI hardware market creates a 'Strong Buy' opportunity for Super Micro, with substantial growth potential and low profit multiple.

Woman standing in aisle of server room

Erik Isakson

Super Micro Computer, Inc. (NASDAQ:SMCI) has become another victim of the tech carnage. Last week, the AI hardware company’s stock plummeted more than 20% after 4Q24 earnings that were not bad at all, but the margin development caused some concerns about

This article was written by

14K Followers
A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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