Super Microcomputer: Be greedy when others are fearful (rating upgrade).
After the announcement that the Ministry of Justice is investigating SMCI's accounting practices a few days ago, the stock price of Super Microcomputer once again plummeted.
Despite the DOJ investigation, I believe that SMCI's strong core business and the potential of the server market will become an attractive investment before the performance announcement of the first quarter of 2025.
The company recently implemented a 1-to-10 stock split, with a lower valuation, especially considering the expected good performance at the end of this month, making it an excellent buying opportunity.
Due to the investigation by the Ministry of Justice, negative emotions are spreading in the short term, but I see this as an opportunity to invest when others are feeling anxious.
Considering the highly attractive opportunity in the expanding server industry, the risk profile of this stock is very appealing. SMCI is expected to achieve very strong long-term eps growth, surpassing the estimates of Nvidia and AMD.
Despite the DOJ investigation, I believe that SMCI's strong core business and the potential of the server market will become an attractive investment before the performance announcement of the first quarter of 2025.
The company recently implemented a 1-to-10 stock split, with a lower valuation, especially considering the expected good performance at the end of this month, making it an excellent buying opportunity.
Due to the investigation by the Ministry of Justice, negative emotions are spreading in the short term, but I see this as an opportunity to invest when others are feeling anxious.
Considering the highly attractive opportunity in the expanding server industry, the risk profile of this stock is very appealing. SMCI is expected to achieve very strong long-term eps growth, surpassing the estimates of Nvidia and AMD.
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Magnificent7 : Hmm, I wonder if it's better than Dell? I'm hesitant.
Kimihiko OP Magnificent7 : This is the current article from Seeing Alpha.
Kimihiko OP Magnificent7 :
tm_speedstyle371 : I wonder why you would cut losses when it's coming back in a V-shape. I don't think you can win like that.