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Super Micro Computer - AI Stock Analysis
Analysis generated January 21, 2025
Super Micro Computer, Inc. (SMCI) is a leading provider of advanced server technology, offering a range of products and solutions to meet the demands of diverse applications, from small businesses to large enterprises. The company is known for its high efficiency, performance, and innovation in the server and storage industry. Their portfolio includes server systems, GPU systems, storage servers, and workstations, catering to industries such as AI, machine learning, cloud, and enterprise IT.
Fundamental Analysis
Super Micro Computer's revenue for the last quarter was $3.85 billion, marking a 5.05% increase compared to the previous quarter and an impressive 200.01% increase compared to the same quarter last year. These figures indicate robust growth both quarterly and year-over-year.
The net income for the last quarter stood at $402 million, an increase of 35.98% from the previous quarter and a remarkable 368.82% growth from the same period in the previous year. This significant rise in net income reflects effective cost management and strong profitability.
The EBITDA for the last quarter was $389 million, showing a 2.00% increase from the previous quarter and a substantial 292.62% rise compared to the same quarter the year before. Such growth in EBITDA highlights the company's ability to generate operating profit.
The current P/E ratio is 15.33. This ratio is within a normal range, suggesting the stock is fairly valued by the market without excessive speculation. Overall, the company's fundamentals depict a positive and growth-oriented financial health.
Technical Analysis
The current stock price for Super Micro Computer is $32.37, which is up 2.47% from a month ago, indicating a short-term upward trend. However, this price is down 25.79% compared to a year ago, which could be a cause for concern in the long term.
The Simple Moving Average (SMA10) currently stands at 31.20, lower than the previous SMA10 of 31.22, suggesting a potential downward trend. Coupled with the Relative Strength Index (RSI) of 97.8, which indicates an overbought bearish condition, there could be heightened short-term volatility and potential price corrections.
Alternative Data Analysis
Alternative data provides mixed insights. Super Micro Computer has 457 open positions, down by 27% in the last couple of months, potentially hinting at cost-cutting measures or margin improvements rather than growth. Employee sentiment is neutral.
Website visitation trends show a slight concern with an estimate of 2.2 million visitors, down by 8% over the last few months, indicating potential customer attrition or reduced engagement. However, on social media, the company has seen an increased following, with 8,700 followers on Instagram (up by 47%) and 54,000 followers on Twitter (up by 21%), indicating growing interest and engagement among the online community.
According to AltIndex's AI score, which evaluates stock potential using a combination of fundamental, technical, and alternative data analysis, Super Micro Computer scores a 70, which suggests a “buy” signal.
Conclusion and Recommendation
Super Micro Computer, Inc. (SMCI) exhibits strong fundamental growth, with significant year-over-year increases in revenue, net income, and EBITDA. However, technical indicators suggest potential short-term bearish trends and volatility, while alternative data presents a mixed picture with positive social media growth but declining job postings and website visits. Given the overall analysis and AltIndex's AI score of 70, it is recommended to consider Super Micro Computer as a potential buy, especially for those interested in long-term growth, while keeping an eye on short-term price movements and market sentiment.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
