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!My most recently published bullish article on Super Micro Computer (NASDAQ: SMCI ) stock was aging quite well in the few trading sessions after the publication date, but then the stock price startedDaniel Sereda is chief investment analyst at a family office whose i ...

Core Insights - JR Research is recognized as a top analyst in technology, software, and internet sectors, focusing on growth and GARP strategies [1] - The investment approach emphasizes identifying attractive risk/reward opportunities with strong price action to generate alpha above the S&P 500 [1][2] - The investment group Ultimate Growth Investing specializes in high-potential opportunities across various sectors, targeting stocks with robust fundamentals and turnaround potential [3] Investment Strategy - The focus is on growth investing opportunities that offer significant upside potential while avoiding overhyped and overvalued stocks [2] - The strategy includes capitalizing on battered stocks that have substantial recovery possibilities [2] - The investment outlook typically spans 18 to 24 months for the thesis to materialize [3] Group Characteristics - Ultimate Growth Investing is designed for investors looking to capitalize on growth stocks with strong fundamentals and buying momentum [3] - The group emphasizes turnaround plays at highly attractive valuations [3]

Core Viewpoint - Super Micro Computer (SMCI) has faced significant volatility in its stock price due to financial uncertainties and accounting issues, but recent developments may present investment opportunities despite ongoing risks [1][2][10]. Financial Performance - Supermicro's fiscal Q1 revenue was reported at $5.94 billion, with a revenue growth of 180% compared to the previous year [8] - For fiscal Q2, revenue was $5.68 billion, reflecting a growth rate of 55% [8] - The gross margin for fiscal Q1 was 13.1%, while it decreased to 11.8% in fiscal Q2 [8] Accounting and Governance Issues - The company faced scrutiny over accounting practices, including allegations of manipulation and improper dealings, leading to investigations by the Department of Justice and the SEC [3][5][10] - Supermicro's previous auditor, EY, resigned due to concerns about governance and internal controls, which led to the appointment of BDO as the new auditor [6][10] - BDO issued an "adverse opinion" on Supermicro's internal controls, indicating potential risks of undetected misstatements [10][11] Market Position and Future Outlook - Despite lowering its revenue guidance for the current fiscal year, Supermicro has ambitious targets for fiscal 2026, aiming for $40 billion in revenue, up from a forecast of $23.5 billion to $25 billion for fiscal 2025 [12] - The stock is currently valued at 12.5 times forward P/E based on fiscal 2026 estimates, which may attract investors looking for growth in AI infrastructure [12] - The company is positioned as a key player in the AI infrastructure market, benefiting from its role as a major reseller of Nvidia's GPUs [2][12]

Core Insights - Supermicro is expanding its operations in Silicon Valley with plans for a third campus, which will be nearly 3 million square feet upon completion, enhancing its position as a leader in the IT industry [1][2] - The expansion is expected to create hundreds of new jobs across various sectors, including engineering, production, and corporate roles, contributing to local economic growth [3] - Supermicro anticipates that up to 30% of new data centers will adopt liquid cooling solutions, reflecting a shift towards more efficient and sustainable data center operations [2][3] Company Overview - Supermicro is a global leader in Application-Optimized Total IT Solutions, focusing on AI, Cloud, Storage, and 5G/Edge IT Infrastructure [5] - The company manufactures a wide range of products, including servers, AI systems, storage solutions, and networking equipment, designed to optimize performance and reduce environmental impact [5] - Supermicro's Building Block liquid cooling solutions are aimed at improving data center efficiency and reducing operational costs through lower electricity usage [3][5] Economic Impact - The planned expansion is supported by local government and utility companies, highlighting the collaboration between Supermicro and the community to foster economic growth [3][4] - The new development is expected to redefine the concept of "Made in America" by creating high-paying jobs and driving innovation in the tech sector [3] - PG&E is committed to providing reliable and sustainable power to support Supermicro's expansion and the growing needs of the tech industry [4]

Super Micro Computer, Inc. (NASDAQ: SMCI ) has had a wild ride so far in 2025. Investor confidence improved after an independent special committee found no management wrongdoing, and Nasdaq granted Super Micro Computer an extension to file its annual reportFriso Alenus is a junior financial analyst at a private equity and venture capital firm. Since December 2020, Friso has actively engaged in the stock market, honing his analytical skills and astute decision-making capabilities. Further, Friso is a CFA LVL ...

Group 1 - The article emphasizes a long-term value investing approach, focusing on classical value ratios such as low P/B, P/FCF, and Owner Earnings discounting [1] - It advocates for self-indexing using the Dow Jones Industrial Average combined with Joel Greenblatt's Magic Formula for tax efficiency [1] - The author has a background in private credit and commercial real estate mezzanine financing, with experience working with top developers [1] Group 2 - The article does not provide any stock, option, or derivative positions in the companies mentioned, nor does it plan to initiate any within the next 72 hours [2] - The content is based on personal opinions and research, and it is not intended as financial advice [3] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect those of the platform as a whole [4]

Super Micro Computer, Inc. (SMCI) jumped 12.2% on Wednesday after filing its long-delayed financial reports, successfully avoiding Nasdaq delisting just before the Feb. 25 deadline. The company’s fiscal 2024 annual report and first two quarters of fiscal 2025 filings removed a major overhang that had weighed on the stock for months.While this regulatory clarity triggered a relief rally, serious risks remain, and investors should take profits before another downturn.Regulatory and Legal Risks Still Loom Larg ...

Core Viewpoint - Super Micro Computer has faced significant challenges recently, including financial reporting issues and a potential Nasdaq delisting, leading to a stock price drop of over 67% from September to mid-November. However, the company has taken steps to regain investor confidence and compliance with Nasdaq requirements, which may present a buying opportunity for investors [1][4][11]. Company Performance and Challenges - Supermicro experienced a remarkable nearly 800% stock gain over the past three years, driven by demand from AI customers for its server products [2][3]. - The company’s revenue in the last year exceeded its total revenue from 2021, highlighting its rapid growth due to AI-related demand [3]. - The situation deteriorated in late August when a short report raised concerns about accounting practices, leading to delayed financial filings and a resignation of the company's auditor [5]. Recovery and Compliance - Supermicro has hired a new auditor, BDO, and successfully filed its overdue financial reports by the Nasdaq deadline, avoiding delisting [6][7]. - The company has regained compliance with Nasdaq filing requirements, which is crucial for maintaining investor interest and institutional support [8][9]. - The absence of restatements in the financial reports is a positive sign for investors, indicating stability in the company's financials [10]. Future Outlook - The AI market is projected to grow from $200 billion today to over $1 trillion by 2030, suggesting significant growth potential for companies like Supermicro [11]. - Despite improvements, Supermicro faces challenges, including an "adverse opinion" from its auditor regarding internal financial controls, prompting the company to implement corrective measures [12]. - The decision to invest in Supermicro may depend on individual risk tolerance, with cautious investors advised to wait for further recovery signs, while aggressive investors might consider buying shares now [13][14].

After a whirlwind of Nasdaq listing and liquidity uncertainties at Super Micro Computer, Inc.’s (NASDAQ: SMCI ) over the past several months, the company has filed its outstanding FY24 10K and F1Q25 and F2Q25 10Qs at the 11Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (o ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...