- SMCI’s intrinsic value is calculated at $85, presenting a potential 160% upside from the current share price of $32.6.
- The factor that still heavily weighs on SMCI’s share price is the fact that the company still did not submit required filings, but now we have the date, February 25.
- From the business perspective Super Micro Computer still looks rock-solid with massive revenue growth, positive EPS dynamic, and extremely strong AI tailwinds behind the back.
My thesis
My previous bullish call on Super Micro Computer (NASDAQ:SMCI) went live on October 5 when the stock price was $41.5. At the moment, SMCI is around 21% cheaper, but I am still bullish and still believe that the stock merits a Strong Buy.
SMCI is still dirt cheap with my intrinsic value estimate of $85, much higher than the current share price. But it is not only about the compelling valuation but also about the company’s rock-solid fundamentals and rapidly accelerating momentum for the AI servers niche. It seems to me that the uncertainty surrounding the company’s required filings is the only significant factor still weighing on the share price. However, management has provided a date for when it plans to submit all the necessary paperwork, which is February 25. I expect it to be a powerful catalyst for the share price because everything else around SMCI looks rock-solid.
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