Super Micro Computer (SMCI) got off to an incredible start this year as shares more than quadrupled from January to mid-March. This surge made Super Micro eligible for S&P 500 inclusion, with the technology hardware stock (with links to AI) being added to the index on March 18, 2024. In hindsight, that would have been a great time to take profits or Short the stock, as shares are down by more than 50% since then.
One of the major developments has been the report by Hindenburg Research, which contained worrying allegations about the company’s financial reporting. In assessing those allegations along with Super Micro’s fundamentals I hold a neutral rating on the stock.
Hindenburg Casts Doubts About Super Micro
The Hindenburg report is actually the main reason I am neutral instead of bullish on SMCI stock, and I believe it has caused hesitancy among many AI stock analysts and…
