FIRED Up Wealth
Motley Fool Analyst & Investment Educator
Super Micro Computer is hard to invest in despite its absurd guidance, because what management did leaves zero trust in it. x.comÂ
Super Micro is not worth touching no matter how cheap, because its management cannot be trusted. It has a good customer roster, including xAI for its first Memphis data center, but that matters little without trust in the people behind it. Dell, a bet on its founder, remains the preferred server name, unchanged from a year ago. x.comÂ
Super Micro Computer is getting too cheap to ignore even if its earnings are questionable; its management is the main reason the stock is weak. Without them the shares would likely already be much higher, and @NebbioloNerd says the market will never trust the team and the stock would rip to $50+ if Liang and others stepped aside. The case leans on Trump being in office. x.comÂ
Super Micro is cheap for a reason: it has the worst margins and the worst management team. x.comÂ
Super Micro Computer's $7 billion equity raise is heavy dilution to fund AI spending, and the market is never going to like a raise that large. The stock sold off on the news, fitting a broader weakness theme around dilution for AI spend. x.com x.com x.comÂ
Super Micro is a buy on fundamentals, though the near term will be a disaster. It needs time to stabilize under better management, so any buying should be scaled in slowly. x.comÂ
Super Micro Computer is an AI hardware company with a history of fraud and is likely committing some kind of fraud now, so a surprise guide of 15-17% Q4 gross margins versus 8% previously does not make it a credible long. x.comÂ
Super Micro Computer is not worth the risk regardless of its business or multiple, given early signs of sketchy business that have now escalated. Per @WOLF_Financial, its co-founder was charged with smuggling about $2.5B of servers with Nvidia AI chips to China via a Southeast Asian shell company, using fake paperwork and dummy servers to fool the compliance team. x.comÂ
Increased AI-platform demand is lifting Super Micro Computer's preliminary revenue above guidance. Supermicro estimates fiscal Q1 2027 revenue of $18.5B-$19.5B versus $14.5B-$15.5B guided, and gross margin of 12%-12.5% versus 10.4%-10.8% guided, primarily due to customer and product mix. No one is bullish enough on the stock; $50+ by year-end is in view. x.com x.com x.comÂ
Super Micro Computer has been rotten from the beginning, a stock to avoid when so many peers are available. Per @StockMKTNewz, citing CNBC, US prosecutors have charged a Super Micro co-founder, employee and contractor with smuggling Nvidia chips to China, yet the stock is only down about 3%. x.com x.comÂ