Stock-Split Watch: Is Super Micro Computer Next?
The AI server maker's stock lost its luster after its first stock split.
Super Micro Computer (NASDAQ: SMCI), more commonly known as Supermicro, executed its first stock split on Oct. 1, 2024. That 10-for-1 split reduced its trading price from $416.40 to about $41.64 per share, while its market cap remained nearly unchanged at $24 billion.
But today, Supermicro trades at about $37 with a market cap of $22 billion. Let's see why its stock pulled back after its stock split and if it will ever rally high enough to be split again.
Supermicro produces servers for data centers. That's a commoditized market which is dominated by tech giants like Dell and Hewlett Packard Enterprise, but Supermicro carved out a niche with its liquid-cooled artificial intelligence (AI) servers.
