Super Micro Computer (NASDAQ:SMCI) has received a passing grade after meeting the February 25 filing deadline, alleviating delisting fears. However, concerns about internal controls, market instability, and AI spending remain, contributing to a drop in share prices.
Investor Friso Alenus believes SMCI is an “attractive investment” with upside potential despite past accounting issues. He points to strong AI-driven sales growth, major outlays in AI spending from hyperscalers, and improving competitive advantages. However, analysts are more cautious, citing concerns about the company’s valuation relative to its historical average.
Alenus notes SMCI’s direct-liquid cooling technology offers energy efficiency, cost savings, and improved performance, which should justify a higher multiple. With sales numbers expected to rise, Alenus recommends buying the stock, rating it a Buy. In contrast, Wall Street analysts have a consensus Hold rating, with a 12-month average price target of $45.75, suggesting potential gains of around 10% in the year ahead.
While the featured investor’s opinions are presented for informational purposes only, investors should conduct their own analysis before making any investment decisions.
Source: https://www.tipranks.com/news/the-verdict-is-in-says-investor-about-super-micro-computer-stock