Super Micro Computer (NASDAQ: SMCI) stock is seeing a big pullback in Thursday's trading. The company's share price was down 12% as of 2 p.m. ET amid flat trading for the S&P 500 index and a 0.6% decline for the Nasdaq Composite.
Supermicro stock is losing ground today in conjunction with broader pullbacks for tech stocks. The company's share price is heading lower following recent analyst coverage, and Nvidia's recent Q4 report may also be weighing on the stock.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Supermicro stock is giving up some of yesterday's gains
Supermicro's valuation rocketed higher yesterday after the company submitted its delayed 10-K filing to the Securities and Exchange Commission (SEC) and closed the door on concerns the stock would be delisted from the Nasdaq stock exchange. But investors are taking profits on the heels of yesterday's pop and also reducing exposure to AI stocks after Nvidia's Q4 report yesterday.
Adding another bearish pressure for Supermicro stock, Barclays published new coverage on the company yesterday that raised concerns about the strength of the business's competitive moat and ongoing reputational issues tied to accounting concerns and other dynamics. While Barclays acknowledged that Supermicro has a leadership position in the artificial intelligence (AI) server market, the firm still sees too much risk to make shares a worthwhile buy.
What's next for Supermicro?
With its delayed reports now filed with the SEC, Supermicro stock has cleared a vital hurdle. The reports arrived without any major restatements of previously issued results, and the stock is no longer in danger of being delisted from the Nasdaq stock exchange.
Barclays had suspended coverage on the stock due to the delayed earnings filings, but it reinstated coverage with an equal weight rating. The firm's analysts set a one-year price target of $59 per share on the stock. While the analysts highlighted concerns about the company's outlook, their one-year price target still implies 31% upside potential as of this writing.
Should you invest $1,000 in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $804,553!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of February 24, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
