Super Micro Computer vs. Lumen Technologies: Wall Street Says to Sell One of These AI Stocks and Hold the Other

Group 1: Lumen Technologies - Lumen Technologies operates one of the largest interconnected fiber-optic cable networks, providing high-speed internet, cable television, and phone services, with its stock increasing by approximately 250% this year due to AI-related demand [2] - The company reported $5 billion in new business attributed to AI demand, but short sellers question the sustainability of this valuation and the actual benefits from the AI boom [3][4] - Wall Street analysts show skepticism, with no buy ratings, five holds, and three sells, indicating an average price target of $4.09, suggesting about 38% downside [4] Group 2: Super Micro Computer - Super Micro Computer is the most shorted stock in the S&P 500, with over 21% of its outstanding float sold short, and its stock has surged 68% this year due to perceived demand from AI infrastructure [5] - Allegations of accounting malfeasance have resurfaced, with claims that management has reverted to incorrect accounting practices, raising concerns about the company's financial integrity [5][6] - Analysts are divided, with three recommending a buy, ten holding, and one selling, and an average price target suggesting a 34% upside from the current stock price [6]