From Nasdaq: 2025-04-21 04:00:00

Super Micro Computer (NASDAQ: SMCI) faces challenges after accusations of accounting manipulation and the resignation of its auditor, Ernst & Young. However, the company has refuted many allegations and hired a new auditor, BDO, which verified its revenue and profit. The company is also upgrading its IT and accounting systems.

Despite concerns, the AI infrastructure investment is expected to continue growing. Hyperscale companies have restated their spending plans for 2025, and IDC predicts a 42% compound rate of growth for AI servers through 2028. Successful AI deployment can lower costs and enhance revenue opportunities for corporations, even in lean times.

Super Micro’s gross margin has decreased, raising concerns among investors about competition. However, the company’s management expects a rebound in margins with the introduction of new technologies like Nvidia’s Hopper chip. The company’s long-term gross margin range remains at 14% to 17%, and a rebound could change the current narrative.

Despite challenges, Super Micro’s stock is trading at a low valuation, with potential for significant growth. Analysts estimate lower revenue and EPS for 2026 compared to CEO Charles Liang’s expectations. If the company achieves $40 billion in revenue with improved gross margins, its share price could more than double in the next year.

The Motley Fool Stock Advisor team did not include Super Micro Computer in their list of the 10 best stocks to buy now. However, historical data shows significant returns for stocks recommended by Stock Advisor. It’s worth considering the potential for growth in Super Micro and other top stock picks for investors.



Read more at Nasdaq: Prediction: Super Micro Computer Could Surge by 150% in the Next Year