Jonathan Kitchen
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the most heavily shorted stocks on Wall Street with a present short interest ratio of 18%, according to market intelligence firm Marketbeat.
In my view, Super Micro is poised not
Super Micro: Short Squeeze Potential
Summary
- Super Micro is poised for rapid sales and profit growth, fueled by surging data center demand and a $20B DataVolt deal.
- The stock’s high short interest (18%) creates significant short squeeze potential, especially if upcoming earnings exceed expectations.
- Super Micro is undervalued versus AI and server peers, with a 46% upside if re-rated to a 25x forward P/E multiple.
- Risks are limited, as margin pressures and past compliance issues are known, while the bullish thesis remains intact with strong fundamentals.
A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.
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.
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