Data Center
Supermicro Fails to impress; Volatility is here to stay
Just when you think the controversy around Supermicro has cleared, the company offers a fiscal year guidance of $33 billion that beats consensus by 10.8% at $29.8 billion, and yet a statement in the February call has been misconstrued to lead to what the market is calling a significant miss. Those items are less of a concern, whereas margins and cash remain the predominant concern for Supermicro. However, I suspect this time next year the troubles SMCI faces will be a distant memory as even the way the company is raising cash hints toward an underlying strength the current price action (and valuation) does not reflect. Notably, this stock does not offer quality fundamentals, and thus it’s reserved for our Advanced tiers and we will adhere to all technical stops.
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