Super Micro Computer: Why The 22% Dip Could Be A Buy Opportunity
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Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummarySuper Micro Computer stock fell 22.1% after repeatedly missing revenue estimates and guidance, raising execution concerns.SMCI's Q1 sales declined 15% YoY, gross margins dropped to 9.5%, and EPS fell 53%, with delays attributed to customer upgrades and data center readiness.Management guides for $10–11 billion Q2 sales and at least $36 billion for FY, but persistent guidance misses and margin pressure raise risk.Despite a downwardly revised $49.57 price target, I maintain a buy rating given lower expectations, increased execution risk, and a more attractive re-entry point.denisik11/iStock via Getty Images Super Micro Computer (SMCI) stock has fallen 22.1% since my last report after the company missed Wall Street expectations once again. The company has substantial growth opportunities in support of AI inference demand. However, we see thatThis article was written byDhierin Bechai22.09K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You