Super Micro: This Is The Selloff That I've Been Waiting For

(9min)

Summary

  • Super Micro stock suffered another hammering as the market digests its disappointing FQ3 prelim release.
  • Despite near-term challenges, including tariff uncertainties and competitive pressures, the long-term AI growth potential remains intact.
  • The current valuation at 9.1x EBITDA is aligned with historical averages, but investors should avoid adding exposure near the $50 resistance zone.
  • I argue why SMCI's momentum remains with the bulls despite the near-term hurdles in transitioning from Hopper to Blackwell.
  • With that in mind, investors waiting for another amazing opportunity to buy SMCI shouldn't miss this steep plunge to load up.
  • 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

JHVEPhoto

You've got to be kidding me. Investors in Super Micro Computer, Inc. (NASDAQ:SMCI) are being fed another selling frenzy with the stock down more than 15% as it finished post-market on April 29 (following its prelim earnings release). We will

A Unique Price Action-based Growth Investing Service

  • We believe price action is a leading indicator. 
  • We called the TSLA top in late 2021.
  • We then picked TSLA's bottom in December 2022.
  • We updated members that the NASDAQ had long-term bearish price action signals in November 2021.
  • We told members that the S&P 500 likely bottomed in October 2022.
  • Members navigated the turning points of the market confidently in our service.
  • Members tuned out the noise in the financial media and focused on what really matters: Price Action.

Sign up now for a Risk-Free 14-Day free trial!

This article was written by

41.56K Followers

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.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

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.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

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

Learn more

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

Recommended For You

About SMCI Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on SMCI

Related Stocks

SymbolLast Price% Chg
SMCI
--
SMCI:CA
--