- Super Micro Computer faces compliance risks and potential Nasdaq delisting due to delayed financial reports; an independent review found no compliance risks related to the Ernst & Young letter.
- SMCI has multiple catalysts that can improve the stock price, including the release of its FY24 10-K, Q1’25 10-Q, and sales of its Blackwell rack system.
- The Company may be overbuilding with its Silicon Valley expansion and new Malaysia facility, given the current utilization rate of 50%. This could potentially create a margin headwind.
Super Micro Computer (NASDAQ:SMCI) continues to undergo significant risks associated with its financial reporting as the firm navigates its resolution of compliance concerns. Since reporting Q1’25 estimated results, SMCI has brought in BDO as its new auditor. Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working in industries that range from O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Michael takes a macro-value-oriented approach to investment analysis and prides himself in being able to make investment recommendations based on cross-industry analysis.
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