Zacks.com discusses Super Micro Computer, Inc. (SMCI) and its potential as the next NVIDIA. SMCI shares have gained 97% this year, outpacing NVIDIA’s 31.6% gain. Recent partnerships and deals have boosted SMCI’s stock, but caution is advised due to competition and financial risks. SMCI currently has a Zacks Rank #5 (Strong Sell).

The demand for data is driving a digital gold rush, with semiconductor companies playing a crucial role. An under-the-radar chipmaker, not NVIDIA, is poised to capitalize on this market growth. Specializing in unique semiconductor products, this company is gaining attention and may present a valuable investment opportunity.

Investors should remain cautious about SMCI despite recent gains. Intense competition and financial risks could impact the company’s growth potential. SMCI’s non-GAAP gross margin has decreased, and its debt-to-equity ratio is higher than the industry average, signaling financial vulnerability. Analysts project a 39.7% decrease in SMCI’s earnings per share.

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Read more at Nasdaq: The Zacks Analyst Blog Highlights Super Micro Computer, NVIDIA, Intel and AMD