Super Micro Computer Just Avoided Its Biggest Risk. Is the Stock Finally a Buy?
Super Micro Computer (NASDAQ: SMCI) has been through a difficult few months that started with questions about its financial reporting and peaked with a potential Nasdaq delisting. This resulted in the stock plummeting more than 67% from September through mid-November.All of this halted spectacular momentum that had pushed the stock to a nearly 800% gain in the previous three years. Supermicro was one of the early winners of the artificial intelligence (AI) boom as it makes servers and other equipment critical to the operations of AI data centers.AI customers flocked to the company for these products, which resulted in quarterly revenue last year surpassing the company's full-year revenue as recently as 2021. The company's stock was one of the hottest AI stocks before the headwinds picked up.Continue reading
Super Micro Computer (NASDAQ: SMCI) has been through a difficult few months that started with questions about its financial reporting and peaked with a potential Nasdaq delisting. This resulted in the stock plummeting more than 67% from September through mid-November.
All of this halted spectacular momentum that had pushed the stock to a nearly 800% gain in the previous three years. Supermicro was one of the early winners of the artificial intelligence (AI) boom as it makes servers and other equipment critical to the operations of AI data centers.
AI customers flocked to the company for these products, which resulted in quarterly revenue last year surpassing the company's full-year revenue as recently as 2021. The company's stock was one of the hottest AI stocks before the headwinds picked up.
