Buying a top growth stock after it plummets in value can have the potential to produce significant returns. But investors should be careful in picking up stocks which crashed heavily, as there are often good reasons for the sell-off. The risk is you may end up buying a stock that's destined to fall even further in value.Super Micro Computer (SMCI -1.33%) is a good example of a stock which may have a lot of potential upside that's down big. In just six months, its shares dropped 57%. There are significant qu ...

Super Micro Computer (NASDAQ: SMCI) stock delivered impressive price appreciation in the first half of 2024. However, an August 27 report from now-defunct short-selling activist group Hindenburg Research brought up allegations of widespread fraud and accounting malpractice.A day later, the semiconductor business announced that it would delay the filing of its annual report. By late September, a probe from the Department of Justice (DOJ) was underway — and in late October, the company’s auditor, Ernst & Youn ...

Article Summary - The article discusses Super Micro Computer, Inc (NASDAQ: SMCI) as a swing trade idea, published on 12-10-2024 by Seeking Alpha [1] - The core style of the research is to provide actionable and unambiguous investment ideas based on independent analysis [1] - The research service mentioned, Envision Early Retirement, offers at least one in-depth article per week on such investment ideas [1] Performance and Membership - The research service claims to have helped members outperform the S&P 500 and avoid significant drawdowns despite extreme volatility in both equity and bond markets [2] - A 100% risk-free trial is offered for potential members to evaluate the effectiveness of the service [2]

Core Viewpoint - Investors are looking forward to Supermicro's update to alleviate their concerns regarding the company's performance and outlook [1] Group 1 - Supermicro's stock prices referenced were from the afternoon of January 14, 2025 [1] - The video discussing Supermicro was published on January 16, 2025 [1]

Retailers Can Leverage AI to Increase Revenue and Reduce Costs with Supermicro and NVIDIA's CollaborationSAN JOSE, Calif. and NEW YORK, Jan. 14, 2025 /PRNewswire/ -- National Retail Federation (NRF) -- Supermicro, Inc. (SMCI), a Total IT Solution Provider for AI/ML, HPC, Cloud, Storage, and 5G/Edge, is showcasing the latest solutions for the retail industry in collaboration with NVIDIA at the National Retail Federation (NRF) annual show. As generative AI (GenAI) grows in capability and becomes more easily a ...

Super Micro Computer (SMCI -4.66%) is working diligently to assuage investors who are concerned about its financial statements.*Stock prices used were the afternoon prices of Jan. 10, 2025. The video was published on Jan. 12, 2025. ...

Stock Performance - Super Micro Computer (SMCI) stock fell 5.3% as of 12:45 p.m. ET, with an intraday decline of up to 11% earlier in the session [5] - The stock decline coincided with broader market downturns, as the S&P 500 index was down 0.2% and the Nasdaq Composite index was down 0.8% [5] Regulatory Impact - The U S government plans to expand restrictions on AI chip exports to countries including China, Russia, Iran, and North Korea, which could limit Supermicro's growth opportunities [1][3] - The U S is investigating how Nvidia chips banned from export to China ended up in the country, with Supermicro being part of the probe [4] Business Outlook - Supermicro is set to publish its delayed 10-K report before Feb 25, which could significantly impact its stock performance depending on whether the report aligns with or revises previous results [2] - The company is a leading player in the AI server space and a major customer of Nvidia, relying on its advanced GPUs for high-performance rack servers in AI data centers [6] Geopolitical Dynamics - Geopolitical tensions between the U S and China, particularly around AI technology, could play a significant role in Supermicro's stock performance [4] - The U S aims to strengthen its competitive positioning in AI technology by limiting advancements of geopolitical rivals through export restrictions [3]

My previous bullish call on Super Micro Computer (NASDAQ: SMCI ) went live on October 5 when the stock price was $41.5. At the moment, SMCI is around 21% cheaper, but I am still bullish and still believe that the stockAs an investor who started my path five years ago with my own capital, I represent a blend of hands on experience and academic background in corporate finance. Due to my relatively young age I thrive on discovering long-duration growth opportunities and actively seek out opportunities that ali ...

Super Micro Computer (SMCI -0.03%) stock is down over 20% as it grapples with investor skepticism.*Stock prices used were the afternoon prices of Jan. 9, 2025. The video was published on Jan. 11, 2025. ...

Stock Performance - Super Micro Computer Inc (SMCI) stock has declined 63.3% over the past six months, significantly underperforming the Zacks Computer and Technology sector's 3.8% gain [1] - The stock is currently trading at $32.61, 73.5% below its 52-week high [1] - In contrast, other AI leaders like Marvell Technology (MRVL) and Broadcom (AVGO) have risen 63.8% and 34.4% respectively during the same period [1] Accounting and Governance Issues - Hindenburg Research accused the company of accounting manipulation, self-dealing, and export sanctions evasion in August 2024, triggering a massive sell-off [2] - The company delayed its fiscal 2024 fourth-quarter report to reevaluate internal controls, followed by the resignation of its auditor Ernst & Young [3] - SMCI appointed BDO USA as its new auditor, but questions about financial transparency and governance remain unanswered [3] Regulatory and Delisting Risks - SMCI faces a Feb 25, 2025 deadline to file its delayed fiscal 2024 10-K and fiscal 2025 Q1 10-Q reports, with potential delisting from Nasdaq if it fails to comply [4] - The U.S. Department of Justice and Department of Commerce are investigating potential breaches of export controls, specifically regarding NVIDIA's advanced AI GPUs reaching China despite a ban [5] - NVIDIA has asked SMCI and Dell Technologies to conduct spot checks on their Southeast Asian customers [5] Market Sentiment and Competitive Landscape - SMCI's reputation in the competitive AI hardware market has significantly deteriorated, potentially alienating key clients and partners [8] - Rivals like Dell Technologies and Hewlett Packard Enterprise are well-positioned to capitalize on the uncertainty surrounding SMCI [8] - Analysts' earnings estimate revisions reflect declining confidence in the company's near-term growth prospects [9] Financial Metrics and Valuation - Current EPS estimates show a downward trend across all periods compared to 30, 60, and 90 days ago [10] - SMCI's forward 12-month P/E ratio of 9.27 appears undervalued compared to the industry average of 14.86, but likely reflects significant risks [10] - The low valuation could be misleading if delayed financial reports reveal further discrepancies or investigations lead to penalties [10]