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A lot has happened since my last article about Super Micro Computer (NASDAQ:SMCI) published on 7 April. The stock gained slightly less than 70% versus the S&P 500's rise of only about 26% as of the time of
Super Micro Computer Stock's Rally May Well Continue In The Future
Summary
- Super Micro Computer's stock surged nearly 70% since April, fueled by AI enthusiasm and easing trade tensions, despite recent earnings misses and margin compression.
- Recent quarters showed strong year-over-year revenue growth but declining profit margins and EPS, mainly due to inventory issues and delayed customer orders.
- Upside potential remains due to AI demand, new product launches, and insider ownership, though insider selling and inventory risks warrant caution.
- Despite low margins and near-term growth challenges, SMCI appears undervalued, offering a bullish opportunity if AI trends and margin improvements materialize.
A research analyst and a freelance writer looking for value investment opportunities. I have several years of investing experience. I am mostly interested in writing about bargain stocks of large companies. My interest is not limited to American companies but extends to firms operating in other countries but listed on US stock exchanges.
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