This Is Why SMCI Stock Bounced Back, and Why It's Time to Buy

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The artificial intelligence (AI) driven enthusiasm benefited Super Micro Computer, Inc. SMCI, better known as Supermicro. However, self-inflicted setbacks resulted in a sharp decline in share prices. ...

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SMCI, better known as Supermicro. However, self-inflicted setbacks resulted in a sharp decline in share prices. ...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-smci-stock-bounced-back-200500059.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2491050071.SGD","symbol_name":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (SGDHDG) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/why-smci-stock-bounced-back-200500059.html","article_id":"2485703174","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/MjwyKd_nWoFvVBW.JFLfbw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/7e65418edbf7491f843b8e0de38cb899"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485703174","pubTimestamp":1732133100,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The artificial intelligence  driven enthusiasm benefited Super Micro Computer, Inc. SMCI, better known as Supermicro. However, self-inflicted setbacks resulted in a sharp decline in share prices. Despite this, the SMCI stock rebounded strongly, becoming the top performer on the S&P 500 on Tuesday with a 31.2% increase. Does this turnaround prompt consideration about the right time to invest in the SMCI stock?In recent times, Supermicro faced a slew of discouraging news that dragged its share price down. In August, Hindenburg Research alleged that Supermicro was involved in accounting irregularities, and the bearish report had a devastating impact on the SMCI stock. The following day, things worsened after Supermicro declared that it would delay filing its annual 10-K report with the SEC.Supermicro has a scalable business. After all, Supermicro’s business is intertangled with the semiconductor giant, NVIDIA Corpora","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2491050071.SGD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (SGDHDG) ACC","NVDU":"Direxion Daily NVDA Bull 2X Shares","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","LU0528227936.USD":"富达环球人口趋势基金A-ACC","2NVD.UK":"2X NVIDIA ETP","ROE":"ASTORIA US QUALITY KINGS ETF","IE00BQXX3F31.USD":"GUINNESS GLOBAL INNOVATORS \"C\" (USD) ACC","LU2505996509.AUD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (AUDHDG) INC","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU2213496289.HKD":"ALLIANZ INCOME AND GROWTH \"AT\" (HKD) ACC","NVDX":"T-REX 2X LONG NVIDIA DAILY TARGET ETF","LU2403377893.USD":"ALLIANZ SELECT INCOME AND GROWTH \"AM\" (USD) INC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF","MRVL":"迈威尔科技","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","SG9999000418.SGD":"Aberdeen Standard Global Technology SGD","SNVD.UK":"LS -1X NVIDIA","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU2065169927.USD":"M&G (LUX) GLOBAL MAXIMA \"A\" (USD) ACC","NVD2.UK":"2X NVIDIA ETP","LU1084165304.USD":"FIDELITY WORLD \"A\" (USD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU2272731600.USD":"Allianz Global Intelligent Cities AM Dis USD","NVD3.UK":"LS 3X NVIDIA","NVDS.UK":"LS -1X NVIDIA","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","LU0056508442.USD":"贝莱德世界科技基金A2","LU1814569148.SGD":"WELLINGTON GLOBAL QUALITY GROWTH \"D\" (SGDHDG) ACC","NVDA":"英伟达","SMCI":"超微电脑","LU1992135472.HKD":"ALLIANZ GLOBAL INTELLIGENT CITIES \"AT\" (HKD) ACC","LU0788109477.HKD":"BGF GLOBAL ALLOCATION \"A2\" (HKDHGD) ACC","HK0000320223.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","SG9999002224.SGD":"Allianz Global High Payout SGD","NVD":"GraniteShares 2x Short NVDA Daily ETF","NVDD":"Direxion Daily NVDA Bear 1X Shares","LU0234572021.USD":"高盛美国核心股票组合Acc","LU1935043023.USD":"MANULIFE GF GLOBAL MULTI-ASSET DIVERSIFIED INCOME \"AA\" (USD) INC A","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","LU2065171311.SGD":"M&G (LUX) GLOBAL MAXIMA \"A\" (SGD) ACC","LU2433249047.HKD":"THEMATICS META \"R/A\" (HKD) ACC","3NVD.UK":"LS 3X NVIDIA","LU1642822529.SGD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"A\" (SGD) ACC","LU0957808578.USD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"ZU\" (USD) ACC","NVDS":"Tradr 1.5X Short NVDA Daily ETF"},"translate_title":"这就是SMCI股票反弹的原因，也是买入的时候","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ROE":1,"MRVL":1,"NVDA":1,"SMCI":0.9,"NVDD":0.6,"NVD":0.6,"NVD2.UK":0.6,"NVD3.UK":0.6,"NVDS":0.6,"NVDS.UK":0.6,"NVDU":0.6,"NVDX":0.6,"NVDY":0.6,"SNVD.UK":0.6,"3NVD.UK":0.6,"2NVD.UK":0.6},"content_text":"The artificial intelligence (AI) driven enthusiasm benefited Super Micro Computer, Inc. SMCI, better known as Supermicro. However, self-inflicted setbacks resulted in a sharp decline in share prices. Despite this, the SMCI stock rebounded strongly, becoming the top performer on the S&P 500 on Tuesday with a 31.2% increase. Does this turnaround prompt consideration about the right time to invest in the SMCI stock? Let’s see – \nWhat Plagued SMCI Stock?\nIn recent times, Supermicro faced a slew of discouraging news that dragged its share price down. In August, Hindenburg Research alleged that Supermicro was involved in accounting irregularities, and the bearish report had a devastating impact on the SMCI stock. The following day, things worsened after Supermicro declared that it would delay filing its annual 10-K report with the SEC. \nA few weeks later, the DOJ investigated Supermicro for accounting violations, while the Nasdaq issued a letter of non-compliance that threatened to delist the company from the tech-laden index. If delisted, the stock may trade over the counter, affecting trading volume. Adding to the woes, Supermicro’s auditor, Ernst & Young, resigned over financial reporting standard issues. Maybe there was a disagreement about accounting practices with management.\nLastly, in another regulatory filing, Supermicro declared that it would not submit its recent quarterly report, which raised the magnitude of the company’s dilemmas and prompted investors to sell SMCI stock. However, investors have begun to load up Supermicro’s shares from yesterday’s trading session.\nWhy Did SMCI Stock Rebound Yesterday?\nThings are looking brighter for Supermicro’s investors, as the company hired an independent auditor—BDO, the fifth-biggest public accounting firm. BDO’s solid reputation is good news for Supermicro’s stakeholders as the company can file its annual 10-K report quickly and restore faith among market participants.\nIf the filing is done on time, Supermicro’s chances of being delisted from Nasdaq diminish. Supermicro is now better positioned to submit a compliance plan with the Nasdaq. Supermicro, anyhow, has a reputation for successfully settling issues related to accounting disclosures with the SEC. It did settle penalties issued by the SEC regarding accounting irregularities for fiscal years 2014 to 2017.\nMoreover, BDO’s engagement suggests that Supermicro’s financials are more manageable than initially feared and that the independent auditor does have trust in management’s integrity. Otherwise, BDO wouldn’t have chosen to audit at this critical juncture. Drawing a parallel, Marvell Technology, Inc. MRVL faced a governance crisis in 2015 and its auditor left. However, Marvel engaged Deloitte and successfully restored compliance and regained investors’ confidence.\n2 More Reasons to be Bullish on Super Micro Computer\nSupermicro has a scalable business. After all, Supermicro’s business is intertangled with the semiconductor giant, NVIDIA Corporation NVDA. To mount AI chips, Supermicro’s AI servers are required. Also, Supermicro holds just a 10% share in the AI server market, leaving more room to expand the business (read more: The Better AI Stock to Buy Now: NVDA or SMCI).\nMeanwhile, Supermicro’s noteworthy 34% return on equity (ROE) surpasses the Computer- Storage Devices industry’s 20.4%, signifying strong profitability, as any ROE of more than 20% is generally considered robust (read more: Post Hindenburg Report: Buy, Hold, or Sell SMCI Stock?).\n\nImage Source: Zacks Investment Research\nSMCI Stock to Buy Hand Over Fist\nWhile the chances of Supermicro being delisted from the Nasdaq lessen as the company appoints a new auditor and maintains a strong position in the AI server market, it makes all the sense to capitalize on the buying spree. And why not? After all, the SMCI stock is less pricey. According to the price/earnings ratio, SMCI trades at 8.4X forward earnings. However, the industry’s forward earnings multiple is 14.5X.\n\nImage Source: Zacks Investment Research\nSMCI stock rightfully has a Zacks Rank #2 (Buy). Brokers also believe that the SMCI stock will scale upward from now on. They increased the average short-term price target of the SMCI stock by 157.2% to $55.39 from the last closing price of $21.54. The highest short-term price target is $130, an upside of 503.5%. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.\n\nImage Source: Zacks Investment Research\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nNVIDIA Corporation (NVDA) : Free Stock Analysis Report\nMarvell Technology, Inc. (MRVL) : Free Stock Analysis Report\nSuper Micro Computer, Inc. (SMCI) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485703174"}