Super Micro Computer Stock Forecast: Can SMCI Hit $1,200 Again? | Markets

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It’s been a long way down for Super Micro Computer (NASDAQ:SMCI). After riding the artificial intelligence wave to new heights and hitting $1,229 per share, Super Micro Computer stock lost over a third of its value.

The catalyst for much of the loss was barely missing analysts bloated revenue expectations. And though Super Micro came up just short, the stock sold off and took down much of the rest of the tech sector with it. Other chipmakers fell in sympathy, including Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). 

Although the sector has regained some of the lost ground, and SMCI stock has led the way rising 8% since the report, it remains well below its peak. Investors may rightly wonder whether the tech leader can become a $1,200 stock again.

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Super Micro reported sterling financial results. Revenue tripled to $3.85 billion while earnings increased 400% to $6.65 per share.

It also raised its full-year revenue guidance to between $14.7 billion and $15.1 billion, well ahead of analyst expectations for $14.6 billion. But because Wall Street had also forecast the chipmaker would bring in $3.95 billion in sales, the market beat down SMCI shares.

What it seems to show is the market remains concerned about valuations. As bright as Super Micro’s future is, the stock was richly valued. Today, though, after losing…

Source investorplace.com

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