3 No-Brainer Reasons to Buy Super Micro Computer Before Its Stock Split - Motley Fool

Super Micro Computer (SMCI) has had a volatile year, with its stock price soaring from $280 to nearly $1,200 before dropping to around $500 after a disappointing Q4 earnings report. However, a 10-for-1 stock split on Oct. 1 will reduce the price to about $50 per share. Despite the dip, there are three compelling reasons to buy the stock:

Vital Role in AI Infrastructure: Supermicro is crucial for AI infrastructure, providing highly customizable, energy-efficient servers, with a long-term revenue goal of $50 billion, up from $15 billion.

Strong Fiscal 2025 Outlook: Despite missing Q4 EPS guidance, Supermicro expects 88% revenue growth in fiscal 2025, with Q1 growth projected at 207%.

Attractive Valuation: The stock is now more reasonably priced at 15.6 times forward earnings, making it a good buy before the stock split. The company is well-positioned for future success.