Super Micro Computer, Inc.: From Micro To AI Server Powerhouse

Company/Stock Description = SMCI is an AI server leader.

Current Price = $801.61

Number of Earnings Beats in the past 4 Quarters = All Four

One Year Return = 182.00%

Five Year Return = 4,172.97%

Industry Health and Future = Along with Dell dominates the AI server market which is still in its infancy.

Trailing PE Ratio = 44.63

Forward PE Ratio = 22.17

Great Business Feature = Juggernaut style growth in the business and stock price due to their servers in general and AI servers in particular.

Verdict and Price Target = SMCI (like LCRX) has been beaten down recently quite a bit. This short term weakness is a great time to open a potion or to dollar cost average if already in. In fact, setting a $1500 price target on this one for the long term.

Update on 10/31/2024: Unfortunately, this is one case where a micro cap stock should have stayed a micro cap stock! Despite the run and prospects mentioned above, this stock continues to fall through a series of events that has been pointing to misdoings by the company. In fact, it is so bad that SMCI could be de-listed very soon. Thus, the only good thing about this stock profile is that it is one of the few that I did not buy any of the stock!

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