There aren’t too many stocks that have had a more blockbuster start to 2024 than Super Micro Computer, Inc. (SMCI) . This manufacturer of high-performance storage solutions in the modular and open architecture domain saw its share price skyrocket before settling back down to more relatable levels at the end of the year. On Feb. 5, 2025, its shares shot up 8% after rising 8.6% in the session before on news that it was going to file a fiscal second-quarter update on Feb. 11. In fact, its stock rose for a seco ...

Super Micro Computer (SMCI 7.99%) has delivered both ups and downs to investors over the past year. The maker of servers and workstations has benefited from artificial intelligence (AI) demand as data centers expand and launch upgrades -- and early last year that led to triple-digit revenue growth and outstanding stock performance.The shares surged 188% in the first half of the year, even beating market giant Nvidia. But questions about the company's financial reporting halted the momentum -- a short-seller ...

Group 1 - Super Micro Computer (SMCI) shares have seen significant movement, rising sharply for two consecutive days as the company announced full production availability of its latest AI data center server solution [2][11] - The company is set to provide a second-quarter business update, with investors keen to know if it will meet the Nasdaq's February 25 deadline for submitting delayed regulatory filings [3] - Despite a nearly 40% recovery over the past three months, Supermicro shares have lost about 50% of their value over the last year due to concerns over accounting practices and corporate governance [4] Group 2 - The stock has been trading within a descending broadening wedge pattern since mid-July last year, with recent trading suggesting a potential breakout attempt [6][11] - The recent price jump occurred on the highest volume since early December, indicating strong buying interest from institutional investors, and the relative strength index (RSI) has improved, confirming positive price momentum [7] - Key resistance levels to watch include approximately $34.50, $50, and $70, while important support levels are around $26 and $18 [11][12]

Super Micro Computer (SMCI 8.98%) stock has been in limbo for months now. The company has been mired in an accounting controversy, and has been at risk of being delisted from the Nasdaq stock exchange since last summer.But shares were pushing higher Wednesday after the company announced it had ramped up production availability of its artificial intelligence (AI) data center server solutions that feature Nvidia's new Blackwell platform. After jumping by almost 14% in morning trading, Super Micro stock remain ...

Core Insights - Super Micro Computer (SMCI) shares surged for a second consecutive session following the announcement of a second-quarter business update scheduled for next week [2][6] - The upcoming update has raised investor hopes that Supermicro will be able to submit its delayed regulatory filings to the SEC by February 25, which is crucial for maintaining its Nasdaq listing [3][6] - Despite the recent gains, Supermicro shares have experienced a decline of over 50% in value over the past year due to concerns regarding the company's accounting practices [5][6] Company Developments - Supermicro's stock rose nearly 9% after the announcement of the second-quarter update, reflecting investor optimism [3] - The company further advanced by 7% on news of ramping up full production availability of AI data center solutions powered by NVIDIA's Blackwell platform, highlighting its focus on AI capabilities [4] - CEO Charles Liang emphasized the importance of their collaboration with NVIDIA in delivering high computational power during the current transformative phase of AI [4] Financial Concerns - The company has faced significant scrutiny over its accounting practices, particularly after allegations of "accounting manipulation" from short seller Hindenburg Research [5] - Following these allegations, Ernst & Young (EY) resigned as Supermicro's auditor, indicating a lack of confidence in the financial statements prepared by management [5]

Supermicro Offers Next-Generation Air-Cooled and Liquid-Cooled Architecture for NVIDIA Blackwell PlatformSAN JOSE, Calif., Feb. 5, 2025 /PRNewswire/ -- Supermicro, Inc. (NASDAQ: SMCI), a Total IT Solution Provider for AI/ML, HPC, Cloud, Storage, and 5G/Edge, is announcing full production availability of its end-to-end AI data center Building Block Solutions® accelerated by the NVIDIA Blackwell platform. The Supermicro Building Block portfolio provides the core infrastructure elements necessary to scale Blac ...

Core Viewpoint - Super Micro Computer (SMCI) has experienced significant revenue growth due to its involvement in the AI sector, but recent financial reporting issues have led to a substantial decline in its stock price, raising questions about its future performance and compliance with Nasdaq [1][2][6]. Company Overview - Supermicro has been a key player in the AI boom, collaborating with top chip designers like Nvidia to provide necessary infrastructure for AI data centers, resulting in triple-digit revenue growth [1]. - The company achieved its first $3 billion quarter last year, surpassing its total revenue from 2021, indicating a strong demand from AI customers [3]. Technology and Market Position - Supermicro's popularity among AI customers stems from its close partnerships with leading chip companies, allowing for rapid integration of the latest technologies into its systems [4]. - The company is a leader in direct liquid cooling (DLC) technology, which addresses heat management challenges in AI data centers, with predictions that 15% to 30% of new data centers will adopt this technology [5]. Financial Reporting Issues - A short report by Hindenburg Research raised concerns about Supermicro's accounting practices, leading to delays in the submission of its 10-K and 10-Q reports, and the resignation of its auditor [6][7]. - Nasdaq issued a non-compliance letter due to these reporting delays, putting Supermicro's listing at risk [7]. Recent Developments - An independent committee found no evidence of fraud or misconduct in Supermicro's accounting practices, and the company does not expect changes to its previously unaudited financial reports [8]. - Nasdaq has set a new deadline of February 25 for the submission of the delayed financial reports, which could positively impact the stock if met [8][9]. Investment Considerations - Currently, Supermicro's stock is trading at a low valuation of 10 times forward earnings estimates, suggesting potential for growth if the company meets its reporting obligations [9]. - Despite the positive developments, the company remains high risk until it regains Nasdaq compliance and provides complete visibility on its financials [10][11].

Stock Performance - Super Micro Computer (SMCI) closed at $27 80, down 1 35% from the previous session, underperforming the S&P 500's 0 47% loss, the Dow's 0 31% loss, and the Nasdaq's 0 51% decline [1] - Over the past month, SMCI's stock dropped 7 55%, underperforming the Computer and Technology sector's 0 19% loss and the S&P 500's 1 67% gain [1] Earnings and Revenue Projections - The company is expected to report an EPS of $0 75 for the upcoming quarter, reflecting a 33 93% year-over-year growth [2] - Revenue for the quarter is projected at $5 8 billion, up 58 32% from the same period last year [2] - For the full year, earnings are estimated at $3 16 per share, a 42 99% increase, while revenue is projected at $24 05 billion, up 60 95% year-over-year [3] Analyst Estimates and Valuation - Recent revisions to analyst estimates reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - SMCI currently holds a Zacks Rank of 3 (Hold), with no changes to the consensus EPS estimate over the last 30 days [6] - The company is trading at a Forward P/E ratio of 8 93, below the industry average of 13 93, indicating a valuation discount [7] Industry Context - The Computer-Storage Devices industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 160, placing it in the bottom 37% of all industries [7] - Industries in the top 50% of the Zacks Industry Rank outperform the bottom half by a factor of 2 to 1 [8]

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Core Viewpoint - Super Micro Computer's stock has experienced significant sell-offs due to concerns over competition from a new AI model, DeepSeek's R1, which may reduce reliance on high-performance hardware [1][2][3]. Group 1: Stock Performance - Super Micro Computer's share price fell by 12.5% in a single trading day, contrasting with a 1.8% decline in the S&P 500 and a 3.5% decline in the Nasdaq Composite [1]. - The stock is now down 75.5% from its peak last year [3]. Group 2: Competitive Landscape - DeepSeek's R1 AI model has been reported to perform comparably or better than OpenAI's ChatGPT, raising concerns about the U.S. losing its competitive edge in AI to China [2][5]. - The emergence of DeepSeek's R1 highlights AI as a critical area of global competition, which could impact Super Micro Computer's market position [5]. Group 3: Hardware Dependency - Nvidia's advanced GPUs are essential for Supermicro's high-performance servers, and the potential shift towards less powerful hardware for AI could affect demand for Supermicro's products [3]. Group 4: Regulatory and Financial Concerns - The U.S. Department of Commerce is investigating how Nvidia chips, which were banned from export, ended up in China, raising concerns for Supermicro and its distribution channels [6]. - Supermicro has delayed filing its 10-K report due to potential accounting issues, which could lead to significant downward revisions of previously stated results, further impacting its stock price [7].