After the Hindenburg Report, Is Super Micro Computer Stock a Buy or a Sell?

Super Micro Computer (NASDAQ: SMCI) has been one of the biggest winners of the AI boom so far. Revenue has taken off, reaching record levels, as customers rushed to order the company's latest servers and workstations for their data centers. This has helped the stock soar, even outperforming market star Nvidia in the first half of the year, and Supermicro win spots in the S 500 and the Nasdaq-100 this year.

But this success story recently hit a speed bump in the form of a short report from Hindenburg Research, with the firm alleging troubles at the equipment maker. Short-sellers have a financial incentive to drive down the price of the stock they are short, so you always have to keep that in mind when reading a "short report."

Supermicro shares have slid more than 20% since the report in late August, sending valuation tumbling, too. So right now, you may be wondering whether to avoid Supermicro or buy the dip.

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Source Fool.com