2024-06-06 07:56:49 ET
Summary
- Super Micro Computer stock has dropped 23% since March 1, but the dip makes no sense as the company's fundamentals and secular trends remain immense.
- The company's Q3 earnings showed tripled revenue and quadrupled adjusted EPS, indicating robust operating leverage.
- SMCI demonstrates exemplary working capital management amid surging revenue, indicating high-quality strategic and tactical decision-making within the company.
- My valuation analysis suggests that there is an 85% upside potential.
Investment thesis
My previous bullish thesis about Super Micro Computer ( SMCI ) did not age well from the share price movement perspective. The stock plunged by around 23% since March 1, the broader market's dynamic was much better over the same period....
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Super Micro Computer: Time To Load Up