Super Micro Shares Drop 20% Despite Strong Earnings: Is It Time to Buy?

Reported 2 months ago

Super Micro Computer's shares plummeted 20% after its fiscal fourth-quarter report, revealing a 143% revenue surge to $5.31 billion but disappointing EPS of $6.25 due to declining gross margins. Despite strong growth driven by demand for AI and cooling technologies, the company faces challenges with low margins and component shortages. Analysts suggest caution for investors considering buying the dip, as the stock trades at a forward P/E ratio of 14 amidst concerns about its pricing power and margin stability.

Source: YAHOO

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