Super Micro Computer: Understanding The Recent Developments, Reversal Possible

Summary

• NVDA continues to regard SMCI as a key partner during the ongoing data center capex boom, with it signaling further excellence in its future sales.
• SMCI's ability to onboard a new auditor implies a potential reversal, as similarly observed in the stock's near doubling from the mid November 2024 bottom.
• These developments suggest that SMCI's FQ1'25 Business Update numbers may be reliable to a large extent, lending strength to its high growth investment thesis.
• This is significantly aided by the cheap FWD PEG non-GAAP ratio and the excellent capital appreciation prospects over the next few years.
• Even so, SMCI's ability to complete its 10Q and 10K filings on time is crucial to avoiding delisting and restoring investor trust, with the next three months being highly critical.

10'000 Hours

SMCI May Be On The Path Towards Redemption - If All Things Fall In Place

We previously covered Super Micro Computer, Inc. (NASDAQ:SMCI) in early November 2024, discussing the numerous events that had contributed to the stock's meteoric rise

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

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.