Core Viewpoint - The technology sector, particularly semiconductor stocks, is currently viewed as a "risk-on" area in the stock market, with Super Micro Computer Inc. (SMCI) emerging as a key indicator of market sentiment [1][3]. Company Performance - Super Micro Computer's stock price is currently $41.68, reflecting a 6.66% increase [2]. - The stock has a 52-week range of $17.25 to $114.78 and a P/E ratio of 20.99 [2]. - The price target for Super Micro Computer is set at $52.57, indicating a potential upside of 25.47% from the current price [11]. Market Sentiment - Over the past month, while the S&P 500 has entered "Correction" territory with a 10% decline, Super Micro Computer has managed to maintain a return level within 1%, outperforming the market by 11% [4][5]. - The market's preference for Super Micro Computer, despite its 67% decline over the past year, raises questions about the underlying reasons for this positive sentiment [6]. Financial Health - Super Micro Computer reported a top-line revenue of $5.6 billion for the quarter, showcasing a significant 54% annual growth rate [11]. - The company has transitioned from a net operating outflow to a net operating cash flow of $169.1 million over the past 12 months, indicating improved financial stability [12]. Analyst Ratings - Analysts from Northland Securities have initiated coverage on Super Micro Computer with a valuation target of $70 per share, suggesting an upside potential of up to 80% from the current price [13]. - Despite a current "Hold" rating among analysts, the stock's risk-to-reward setup is considered favorable [14].

Super Micro Computer was a big winner in the first half of 2024. However, an August report from now-defunct short-selling activist group Hindenburg Research caused a significant crash in the price of Super Micro stock (NASDAQ: SMCI).The report in question alleged widespread accounting abuses. Super Micro had to delay the filing of its annual report. However, the situation was resolved on February 25, and the server-maker regained full compliance.Two weeks earlier, on February 11, the business also held its ...

Group 1: The Trade Desk - The Trade Desk operates the largest independent demand-side platform (DSP) for digital ads, allowing advertisers to purchase ad space across various platforms [3] - Recent growth has been driven by connected TV (CTV) ads on ad-supported streaming platforms, utilizing first-party data and AI-driven tools [4] - Analysts expect revenue to grow at a CAGR of 19% and adjusted EBITDA to rise at a CAGR of 20% from 2024 to 2027, with an enterprise value of $29.9 billion [5] Group 2: Super Micro Computer - Super Micro Computer specializes in servers for enterprise and data center customers, focusing on high-growth AI servers through a partnership with Nvidia [6] - Revenue surged at a CAGR of 61% from fiscal 2021 to fiscal 2024, but faced setbacks including delayed reports and regulatory scrutiny [7][8] - Analysts project revenue and EPS growth at a CAGR of 36% and 18%, respectively, from fiscal 2024 to fiscal 2027, with the stock trading at 11 times next year's earnings [9] Group 3: Palo Alto Networks - Palo Alto Networks is a leading cybersecurity company with three main ecosystems: Strata, Prisma, and Cortex, focusing on next-gen security services [10] - The company's scale and diversification provide a competitive advantage, with revenue expected to grow at a CAGR of 15% from fiscal 2024 to fiscal 2027 [12] - Despite a high valuation at 91 times next year's GAAP EPS, the company is expected to remain a key player in the cybersecurity sector [13]

New Servers Drive Smarter, Faster, and More Efficient AI from the Data Center to the Edge with Entire Range of Intel® Xeon® 6 Processors Supporting Over 40% More Memory Bandwidth and up to 144 CPU CoresSAN JOSE, Calif. and NUREMBERG, Germany, March 11, 2025 /PRNewswire/ -- Supermicro, Inc. (NASDAQ: SMCI) a Total IT Solution Provider for AI/ML, HPC, Cloud, Storage, and 5G/Edge, is introducing a wide range of new systems which are fully optimized for edge and embedded workloads. Several of these new compact s ...

My previous bullish thesis about Super Micro Computer (NASDAQ: SMCI ) did not age well, as the stock is currently around 13% cheaper compared to the September 11 price. I do not panic at all because SMCI is an inherently volatileI am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In ...

Super Micro Computer (NASDAQ: SMCI ), also known as Supermicro, is still out of favor with investors after its alleged accounting issues, loss of its auditor, and delay in filing its 2024 10-K. Since I last wrote aboutI have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, I often tend to gravitate to Tech s ...

Core Insights - Super Micro Computer (SMCI) has successfully filed its quarterly and annual financials on time, alleviating fears of delisting from the Nasdaq exchange [1][3] - The company reported sales of $5.7 billion for the last three months of 2024, reflecting a 55% year-over-year growth, although this growth rate is declining compared to previous periods [4][5] - Updated guidance for fiscal 2025 projects sales between $23.5 billion and $25 billion, a significant reduction from the previous forecast of $26 billion to $30 billion [6] Financial Performance - Supermicro's gross profit margin remains low, dipping below 12% last year, which poses challenges for sustaining sales growth [7] - The company has reported profits in each of the past four quarters, indicating some positive financial performance despite low margins [8] Investment Considerations - While compliance with financial filing requirements has been regained, the slowing growth rate and potential rise in expenses due to external factors raise concerns about future profitability [9][10] - The current financial situation suggests that Supermicro may not be a safe investment at this time, with volatility expected in the stock [10]

Core Insights - The S&P 500 index experienced a decline of 1.42% in February, resulting in a year-to-date return of 1.24% through the same month [1] - Super Micro Computer and Intel were notable exceptions, with Super Micro Computer's stock rising by 45.37% and Intel's by 22.13% during February [1] Group 1: Super Micro Computer - The significant increase in Super Micro Computer's stock price was primarily due to the company addressing concerns regarding its financial reporting, which had previously put it at risk of delisting from the Nasdaq Stock Exchange [3] - The company successfully filed its audited financial reports by the February 25 deadline, which helped avoid potential delisting [4] - The financial report revealed that Super Micro Computer's fiscal year 2024 revenue more than doubled to $14.9 billion [4] Group 2: Intel - Intel's stock gains were driven by renewed confidence in domestic chip production initiatives supported by the Trump administration, which is crucial for the industry currently dominated by Taiwan Semiconductor Manufacturing Company [4] - The company has missed out on the artificial intelligence boom that benefited other tech stocks, but the renewed optimism regarding its potential in emerging technologies has attracted investors back [5]

Core Viewpoint - Super Micro Computer successfully avoided delisting from NASDAQ by meeting filing deadlines, despite previous accounting issues, which has led to mixed market reactions and varying analyst price targets [1][3][5]. Group 1: Company Performance and Market Reaction - After regaining NASDAQ compliance, Super Micro shares increased by over 12%, indicating a positive market reaction to the news [3]. - However, shares have since declined nearly 24% as of March 5, reflecting ongoing concerns about the company's future prospects [4]. - Analysts have mixed views, with Goldman Sachs raising its price target by 11% to $40, Barclays setting a target of $59, and Loop Capital increasing its target by 40% to $70, suggesting potential upside of nearly 45% based on average targets [5]. Group 2: Financial Performance and Projections - In Q4 2024, Super Micro reported a revenue growth of 55%, a significant deceleration from over 100% growth in previous quarters [6]. - Revenue growth expectations for 2025 are projected at 60%, down from 125% in 2024, with gross margins dropping nearly 400 basis points and operating margins slipping 140 basis points [7][8]. - Despite high revenue growth, the company generated cash from operations of -$2 billion over the last 12 months, primarily due to timing mismatches in payments [11]. Group 3: Competitive Position and Challenges - Super Micro specializes in AI server racks, leveraging partnerships with suppliers like NVIDIA, which enhances its competitive edge [9][10]. - The company faces challenges with low profit margins, operating margins around 10% or lower, and gross margins in the mid to high teens during growth periods [12]. - Concerns about management transparency and the need for consistent higher margins remain, impacting long-term investment confidence [14].

Ever since my last report on Super Micro Computer (NASDAQ: SMCI ), my expectation was mostly accurate, making the 10-K filing 80% likely to be successful, a scenario that played out accordingly. However, whereas I anticipated the stock to continue rallyingYiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, F ...