Super Micro: I'm Loading Up Again (Rating Upgrade)

(9min)

Summary

  • I think the recent correction in Super Micro Computer stock—which I had anticipated and which happened more quickly than expected—creates an attractive entry point for dip buyers.
  • The successful SEC filings reduced uncertainty, potentially attracting institutional investors and leading to a sentiment reversal.
  • Barclays reinstated their 'Equal Weight' rating with a $59 price target, citing improved business fundamentals and growth in AI server demand.
  • I've already bought more to my existing small position yesterday, and I am planning to load up in the next few trading sessions.
  • Despite risks like internal control weaknesses and competitive moat shrinkage, SMCI appears over 25% undervalued based on business growth prospects and current EPS estimates.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Скорость загрузки интернета на экране компьютера. Высокоскоростное подключение к Интернету. Концепция технологии быстрого подключения к �

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Thesis Update

It's crazy how fast a thesis may play out sometimes. Less than 2 weeks ago, I published my previous take on Super Micro Computer, Inc. (NASDAQ:SMCI) stock with a rating

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This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

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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