Guilherme ISS
10-01

$SUPER MICRO COMPUTER INC(SMCI)$  Considering investing in Super Micro Computer Inc. (SMCI)? The company's recent stock performance has been impacted by a bearish report from Hindenburg Research, alleging accounting manipulation and other issues . This has led to significant short-selling pressure, with over 8.7 million shares sold short as of September 15 .


However, some analysts believe that the drop in share price has made SMCI more attractively valued, with a forward P/E of 11.5x. 

The company's revenue growth has been impressive, exceeding 143% year-over-year, driven by strong demand for its servers .

Pros of Going Long on SMCI:

- Growing Demand for AI Servers: SMCI is well-positioned to capitalize on the increasing demand for AI servers, with a projected market size of $430 billion over the next decade .

- Undervalued Stock: Some analysts consider SMCI undervalued, with an intrinsic value of $621.77, 33% higher than its current market price .

- Strong Revenue Growth: SMCI's revenue growth has been impressive, with a 110% increase in fiscal year 2024 .

Cons of Going Long on SMCI:

- Allegations of Accounting Manipulation: Hindenburg Research's report raises concerns about SMCI's accounting practices and potential sanctions violations .

- Short-Selling Pressure: The significant short interest in SMCI could lead to further price volatility .


Ultimately, the decision to go long or short on SMCI depends on your individual investment goals and risk tolerance. It's essential to weigh the pros and cons carefully and consider multiple perspectives before making a decision.

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