Super Micro Computer, Inc.’s bullish thesis was recently covered by Deep Value Returns, with shares trading at $33.41 on December 1st. Despite falling short of guidance, SMCI reaffirmed full-year guidance, with skepticism from investors due to management’s credibility gap. The company trades at around 17x forward free cash flow while growing at 30% year over year.

SuperMicro’s recent earnings preannouncement reflected a recurring issue of falling short of guidance. The market has priced in the credibility gap, with focus shifting to sustained growth acceleration. The company trades at 17x forward free cash flow, presenting a strong value opportunity despite management’s repeated misses.

Despite management’s trust erosion, SuperMicro’s business performance and AI infrastructure tailwinds support optimism. The author maintains a $60 price target by summer 2026, viewing the latest quarter’s missteps as temporary. A previous bullish thesis on SMCI highlighted its leadership in AI infrastructure and innovation in server design, with the stock depreciating by 2.48% since coverage.

Super Micro Computer, Inc. is not among the 30 Most Popular Stocks Among Hedge Funds, with 48 hedge fund portfolios holding SMCI at the end of the second quarter. While acknowledging SMCI’s investment potential, certain AI stocks offer greater upside potential with less downside risk. For an undervalued AI stock benefiting from tariffs and onshoring trends, see Deep Value Returns’ free report.

Read more at Yahoo Finance: Super Micro Computer, Inc. (SMCI): A Bull Case Theory