Super Micro Computer (SMCI) stock has dropped 8.2% to close at $40.54, despite reassurances from management about the company’s robust business and customer base. JPMorgan analyst Samik Chatterjee expressed confidence in Supermicro’s ability to service orders and gear up for new product rollouts.
Chatterjee visited Supermicro’s headquarters in San Jose, California, where he met with executives who assured him of a strong customer base with no significant changes to order allocations. The company is also on track to ramp production at its new plant in Malaysia in the first half of 2025.
However, Chatterjee rates SMCI stock as underweight, or sell, with a price target of $23. Supermicro’s shares have hit a split-adjusted record high of $122.90 on March 8 but have faced challenges in recent months, including accounting manipulation allegations and export control failures.
The company recently announced that it has secured an extension to submit its key filings with the Nasdaq stock exchange until February 25. Despite these developments, investors are giving up on SMCI stock.
Source: https://www.investors.com/news/technology/smci-stock-supermicro-customers-staying-put