The countdown is on! Super Micro Computer (NASDAQ:SMCI) is approaching the critical February 25 date for submitting its audited financials.
Discover the Best Stocks and Maximize Your Portfolio:
The stakes could not be higher for the AI server company, which risks getting delisted from the Nasdaq stock exchange if it is unable to satisfactorily meet the deadline.
Despite the pressure, investors are showing confidence. SMCI’s stock jumped nearly 17% in Wednesday’s trading session, signaling that they believe the company will hit the mark and file the results without any major hiccups.
Among the confident investors is top investor JR Research, who ranks in the top 2% of TipRanks’ stock experts. JR sees SMCI as being at a pivotal moment – an opportunity too compelling to pass up.
“Improved industry indicators have increased my confidence that the worst for SMCI is likely over (barring another compliance surprise),” posits the 5-star investor.
JR believes the AI demand cycle will enjoy a number of catalysts supporting SMCI’s share prices going forward. These include Nvidia’s Blackwell ramp and the Trump Administration’s $500 billion Project Stargate, in which Nvidia will be one of the major technology partners.
JR hones in on the partnership with Nvidia, which highlighted the embattled SMCI in its CES presentation last month. This business collaboration gives JR plenty of confidence that SMCI is well-positioned to ride the AI wave along with the industry-dominating Nvidia going forward.
“I don’t think it’s a coincidence that Nvidia decides to feature Supermicro in its vendor list, and shows that the relationship between Nvidia and Supermicro is in for the long haul,” expands JR, adding that “given Nvidia’s market dominance for AI chips, I cannot stress it further enough.”
On the flip side, all the compliance concerns have pushed SMCI’s valuation downwards, notes JR. This makes it a much cheaper option to acquire prior to the all-important February 25 deadline, sums up the investor.
“Don’t let go of this fantastic buying opportunity,” urges JR. The investor therefore rates SMCI shares a Buy. (To watch JR Research’s track record, click here)
Wall Street, on the other hand, needs more convincing. With 3 Buys, 2 Holds, and 2 Sell ratings, SMCI holds a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $36.50 would translate into losses of 43% over the next 12 months. (See SMCI stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Source link
