Super Micro Computer Stock Is Dirt Cheap Again
Summary
- SMCI remains a "Strong Buy" for long-term investors despite recent volatility, offering significant potential and attractive valuation after a 49% nosedive since June.
- The hardware industry for generative AI is thriving, with strong technological partnerships and soaring revenue growth, positioning SMCI to capitalize on AI momentum.
- Despite concerns over margins, SMCI's strategic investments in infrastructure, R&D, and talent acquisition are expected to pay off, ensuring sustainable growth.
- Valuation ratios show SMCI as dirt cheap compared to AI peers like NVDA and AMD, with a DCF model suggesting a fair value nearly four times higher.
JHVEPhoto
Investment thesis
My previous bullish thesis about Super Micro Computer's stock (NASDAQ:SMCI) was destroyed by the stock market as the stock nosedived by 49% since early June. As I have emphasized in most of my articles about SMCI, the
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
