Reported about 1 month ago
Super Micro Computer (NASDAQ: SMCI) had a tumultuous year in 2024, witnessing an initial surge in stock prices followed by declines due to profit-taking, a disappointing earnings report, and allegations of accounting fraud leading to a DOJ investigation. Despite these concerns, demand for its AI computing products has soared, resulting in a remarkable 143% revenue increase year-over-year to $5.3 billion in Q4 FY 2024. Management projects revenue could grow to between $26 billion and $30 billion for FY 2025, but declining gross margins and investigations into financial practices raise red flags for potential investors. Although the stock offers risks, it also presents an opportunity for long-term growth in an increasingly AI-driven market.
Source: YAHOO