Short seller Hindenburg Research said on Tuesday it had a short position in server maker Super Micro Computer , citing evidence of "accounting manipulation".
Super Micro (SMCI) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Supermicro's business has exploded thanks to AI demand. Management expects $50 billion in annual revenue in the future.
Supermicro recently announced a 10-for-1 stock split. The stock is down nearly 50% from its peak in March.
As the artificial intelligence-fueled tech rally continues, companies that can diversify to address the manifold demands the industry faces are poised to profit.
Super Micro Computer's stock has gained 779% in two years, even outperforming Nvidia in the ChatGPT era. The company is reinvesting profits into new growth drivers, including hiring more engineers and upgrading manufacturing facilities.
Nvidia and Super Micro Computer have been the best-performing stocks in the S&P 500 this year, posting gains of 159% and 119%, respectively. Shipments of Nvidia Blackwell GPUs have reportedly been delayed three months due to a design flaw discovered late in the production process.
Super Micro Computer (NASDAQ: SMCI ) just reported results for the fourth quarter of 2019. Super Micro Computer reported earnings per share of 46 cents.
Super Micro stock has plunged deep into a bear market as investors took profit after a massive run. Nvidia's delayed Blackwell AI chips launch has intensified the market's concerns. SMCI's valuation premium against arch-rival DELL has also narrowed considerably.
Stock rises after the signal. The TradePulse Power inflow Signal was triggered at 10:01 am EDT and the stock hit its high at 1:01 pm EDT.
Super Micro Computer stock is undervalued and has strong fundamentals, with a 100% upside potential according to valuation analysis. The recent pullback in SMCI's share price is not related to fundamental reasons, as revenue dynamics and earnings guidance are massive. The strong correlation between SMCI's revenue growth rates and Nvidia's suggests that Nvidia's upcoming quarterly earnings release will be a strong positive catalyst for SMCI.
Super Micro Computer has a stock split coming up in October. In the past, stocks have rallied following splits -- but that hasn't been the case recently.