Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today!If you read my articles for some time, you should remember that I called Super Micro Computer, Inc. (NASDAQ: SMCI ) a "Strong Buy" back in December 2022 when it wasDaniel Sereda is chief investment analyst at a family office whose investments span continents and div ...

Super Micro Computer, Inc. (SMCI) is currently trading at a discounted valuation, with its forward 12-month price-to-earnings (P/E) ratio at 14.62X, which is lower than the Zacks Computer – Storage Devices industry average of 18.83X.Given SMCI’s discounted valuation, investors might be wondering: Is this an opportunity to buy, or are there deeper challenges that could keep the stock in check?SMCI Forward 12-Months (P/E) Valuation ChartImage Source: Zacks Investment ResearchKey Challenges Faced by SMCIWhile ...

Super Micro Computer (SMCI -2.90%) has been in the doghouse on Wall Street, but the tide may finally be turning. After falling close to 90% from all-time highs the stock has bumped off the lows and is now up over 50% in the past month. The artificial intelligence (AI) beneficiary that builds computer racks for data centers operates in a rapidly changing sector, leading to wild swings in its stock price. It doesn't help that its profit margins keep moving in the wrong direction, either.As of this writing, Su ...

Within the technology sector, a list of names has become hot and popular over the past two years, for good and bad reasons. When it comes to shares of Super Micro Computer Inc. NASDAQ: SMCI, investors have been whipsawed by waves of repeated uncertainty and volatility for different reasons, though it looks like this company's future path (and its stock price) might be cleared for new highs coming up. Super Micro Computer TodaySMCISuper Micro Computer$41.30 -0.35 (-0.84%) 52-Week Range$17.25▼$101.40P/E Rati ...

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.This year I have expanded my coverage significantly to companies that are active in the semiconductor, cloud and AI industries. I believe these industries provide a fundament to modernization in other industries that I cover. Super Micro Computer ( ...

Core Insights - Super Micro Computer Inc (SMCI) experienced a 44.3% weekly gain, marking its best week since November, despite a 2.1% decline today amid broader tech headwinds [1] - The stock has risen 48.7% since the beginning of the year, but faces resistance around the $50 level and the 250-day moving average [1] Options Activity - SMCI has seen significant options activity, with over 7 million calls and more than 2.2 million puts exchanged in the past 10 days, making it one of the most popular stocks in the options market [3] - The May 50 call was the most popular option in the last two weeks, followed by the 47 call, while the June 45 call is currently seeing the most activity with new positions being opened [4] Call/Put Volume Ratio - Over the past 10 weeks, call traders have targeted SMCI at the fastest rate of the year, with a 50-day call/put volume ratio of 2.21, the highest reading in the past 12 months [7] Volatility Expectations - Options for SMCI are currently reasonably priced, with a Schaeffer's Volatility Scorecard (SVI) of 86%, ranking in the 16th percentile of its annual range, indicating lower volatility expectations than usual [8]

Super Micro Computer (SMCI) and Hewlett Packard Enterprise (HPE) are both leading the server space, providing organizations with server-based capabilities, enabling them with high computing power.Per a report by Grand View Research, the Global Server market is expected to witness a CAGR of 9.8% from 2024 to 2030. Strong adoption of servers across industries like healthcare, retail, BFSI, manufacturing, education and others will drive the server space.With this strong industry growth forecast, the question r ...

Last time I covered this volatile stock Super Micro Computer, Inc. (NASDAQ: SMCI ) ("Supermicro"), I told you all to load up while you could under $35; that's exactly what I ended up doing. My averageI’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my servic ...

Core Viewpoint - Super Micro Computer (SMCI) stock has surged over 33% in two trading days due to an analyst upgrade and a $20 billion partnership with DataVolt, but the company faces critical issues with low and declining margins [1][2]. Financial Performance - As of Q3 FY'25, Super Micro's gross margin is 9.6%, down from 11.8% in Q2 FY'25 and 15.5% in Q3 FY'24, while net margins are under 3%, significantly lower than industry peers like HP Enterprise and Nvidia [2]. - Diluted EPS for Super Micro declined to $0.17 in Q3 FY'25, down from $0.51 in the previous quarter and $0.66 a year ago [2]. Revenue Growth vs. Margin Compression - Revenue increased by 19.4% year-over-year last quarter, with projections of over 45% growth this fiscal year and another 35% next year, but low margins may hinder meaningful earnings gains [3]. - If margins remain low, Super Micro risks scaling a low-margin business that could be challenging to manage without creating shareholder value [3]. Technological Advancements - Super Micro has successfully implemented liquid cooling technology at scale, overcoming reliability concerns, which may provide a competitive edge in the AI hardware market despite higher upfront costs and margin pressures [4]. Corporate Governance and Controversies - The company has faced controversies, including allegations of accounting irregularities and scrutiny from short-sellers, which may necessitate cautious investment approaches despite recent improvements in financial filings [5].

Super Micro Computer, Inc. (SMCI) stock encountered controversies over the past year, including accounting violations and a non-compliance letter from Nasdaq. Although Supermicro avoided de-listing, its reputation declined, further aggravated by the issuance of weak guidance. However, Raymond James analysts have recently shown optimism for Supermicro stock. Is this a good time to buy? Let’s find out. Raymond James Remains Bullish on SMCI Stock Raymond James initiated Supermicro stock coverage, rating it “ou ...