Super Micro Computer (NASDAQ: SMCI) started the year off with a bang. The stock soared 188% in the first half, even surpassing the performance of market darling Nvidia, and was invited to join both the S&P 500 and the Nasdaq-100. And for good reason. Earnings have soared at the equipment maker, thanks to demand from artificial intelligence (AI) customers.
The company sells workstations, servers, and other products essential for AI data centers. And considering forecasts for AI market growth — today’s $200 billion market is expected to reach $1 trillion by the end of the decade — the future looks bright too. But a few pieces of news in recent times have weighed on the company, and the stock has dropped nearly 30% since late August.
From a short report alleging troubles at the company to an article in The Wall Street Journal about a possible Justice Department probe, Supermicro has…
