Super Micro Computer: Golden Opportunity For Long-Term Investors
Summary
- Despite weak Q3 results and slowing revenue growth, I maintain my buy rating on SMCI due to its strong long-term AI positioning.
- The company resolved its accounting investigation, avoided delisting, and is strengthening governance, reducing a major overhang on the stock.
- Short-term guidance remains weak, but robust cash flow is promising, and AI product leadership suggests future growth potential.
- Current valuation is attractive for long-term investors, with SMCI trading at a significant discount to the IT sector despite its AI server leadership.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of 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.
Analyst's family has a beneficial long position in the shares of NVDA.
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