2024-02-16 15:19:39 ET
Summary
- Shares of Super Micro Computer, Inc. are up more than 250% year to date, amid a wave of speculative momentum which may be unjustified.
- While the company is benefiting from strong demand for its AI computer solutions, the stock appears overvalued relative to AI chip leaders and mega-cap tech names.
- We expect to see a sharp correction amid extremely overbought conditions.
Super Micro Computer, Inc. ( SMCI ) is one of the most spectacular stock market growth stories in recent memory, with shares up nearly 1,000% just over the past year. Beyond a short-squeeze or meme-based momentum rally, the difference is that SMCI is benefiting from some real fundamental tailwinds.
The company has found itself at the center of the artificial intelligence universe, particularly through its partnership with Nvidia Corp ( NVDA ). For context, sales doubled last quarter with a significant runway for profitability....
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For further details see:
Super Micro Computer: The Bear Case Is Back In Focus (Rating Downgrade)