2024-06-20 08:30:00 ET
Summary
- Despite undergoing a double-digit drawdown and diverging from its AI infrastructure peers in recent weeks, Super Micro Computer stock is still the best-performing S&P 500 stock YTD.
- Supermicro's Q3 FY2024 report fell short of expectations, with lower-than-expected sales and deeply negative free cash flow.
- While our valuation model suggests a fair value of $936 per share for SMCI stock, I am not enthusiastic about buying SMCI stock at current levels. Read to learn more.
Introduction
After a vertical run-up from ~$300 to ~$1200 at the start of the year, Super Micro Computer, Inc. ( SMCI ) stock dropped off by ~45% in light of a $2B equity offering in March and has been consolidating sideways in a broad range ever since....
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For further details see:
Super Micro Computer Is Trading At A Make-Or-Break Level: Buy, Sell, Or Hold?