Super Micro Computer: Recovery Isn't Over Yet

(10min)

Summary

  • Super Micro Computer stock has surged significantly from its November 2024 lows, stunning investors who bailed out and fled then.
  • The special committee's findings indicated no evidence of fraud or misconduct, potentially reducing delisting risks.
  • However, corporate governance lapses were still assessed, suggesting internal controls weren't as robust as what investors expected.
  • The BDO audit is critical to helping SMCI recover from its malaise, suggesting the all-clear sign isn't here yet.
  • However, dip-buying sentiments have turned increasingly robust, underscoring the market's confidence in SMCI's recovery.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Supermicro headquarters in San Jose, California, USA

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Supermicro: Buyers Returned With Conviction

Investors in Super Micro Computer, Inc. (NASDAQ:SMCI) who bailed and fled as the stock crashed below the $20 level, are now likely regretting their rash decision. Accordingly, SMCI has recovered more than 160% from its November 2024

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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

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He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

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The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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

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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