Super Micro Computer Remains Fairly Priced Despite The Decline

The Alpha Oracle
583 Followers

Summary

  • Super Micro Computer benefits from surging AI and data center demand, but its valuation remains stretched even after a significant stock price decline.
  • SMCI's innovation, especially in direct liquid cooling, positions it well for future growth, but margin pressures and delayed customer projects are near-term risks.
  • Given the current valuation and lingering uncertainties, I rate SMCI as Hold and see better AI investment opportunities elsewhere at more reasonable prices.

Futuristic data center

Eoneren

Two and a half years after Chat GPT came out, artificial intelligence is still one of the hottest topics, and the technology is developing even faster. We are currently amazed by the large language models, images, and videos generated by AI. In a not-so-distant

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