Reported about 2 months ago
Super Micro Computer (NASDAQ: SMCI) has shown remarkable sales growth, particularly driven by AI-related demand, with revenue doubling last quarter and a year-to-date return of 90%. However, concerns arise as its gross profit margin has dropped from 17% to 11%, which could hinder future earnings despite its current strong revenue figures. As AI spending may slow down, investors should scrutinize Supermicro's thin margins and operating costs, weighing the stock's relatively low valuation against potential risks.
Source: YAHOO