Keep an eye on beaten-down shares of Super Micro Computer (SYM: SMCI).
While it is a $456 stock, it’s cheap after plummeting from $1,000. All after a review of internal controls by the board of directors and a delayed annual report. However, according to analysts at Needham, SMCI could soon resume its rally.
“Supermicro is currently involved in the deployment of some of the largest AI clusters in the world and entered FY25 with record high backlog. Though we model a [gross margin] recovery more conservative than management’s forecast, we believe the bear case that GM will trend towards the single digits is too pessimistic,” said the analysts, as quoted by CNBC.
The firm also has a $600 price target on SMCI, believing negativity is now priced in.
Last trading at $456, we’d like to see SMCI initially retest $626.
