Super Micro: From Undervalued To Uninvestable

James FoordInvesting Group LeaderFollow5ShareSavePlay(5min)Comments(11)SummarySuper Micro Computer (SMCI) is now uninvestable due to severe governance and trust issues stemming from new criminal allegations.Allegations implicate SMCI insiders in smuggling restricted Nvidia GPUs to China, compounding prior issues with their financials, which led to audits.Investor and customer confidence are severely damaged and there's risk of client attrition.I downgrade SMCI to Sell, as fundamental or technical analysis cannot offset the overwhelming governance and reputational risks.This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More » domoskanonos/iStock via Getty Images Thesis Summary Just last month, I called Super Micro Computer, Inc. (SMCI) the most misunderstood AI stock in the market and upgraded it to a Strong Buy. Today, the stock is down over 27%. Clearly, IThis article was written byJames Foord27.52K FollowersFollowJames Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

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