Super Micro Computer: 3 Reasons to Buy, 3 Reasons to Sell

Super Micro Computer (NASDAQ: SMCI), more commonly known as Supermicro, has been one of the market's hottest artificial intelligence (AI) stocks. Its close relationship with Nvidia granted it access to the chipmaker's top-tier data center GPUs before many of its competitors, and its sales of AI servers skyrocketed as more companies upgraded their data centers to process complex AI tasks. But over the past few months, Supermicro stock has tumbled more than 50%.

A large portion of that decline occurred on Aug. 7 after it posted a mixed fiscal fourth-quarter earnings report. Its announcement of a 10-for-1 stock split also didn't halt that precipitous decline. So should investors consider the steep pullback a buying opportunity? Let's review three reasons to buy Supermicro -- as well as three reasons to sell it. 

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Source Fool.com