Super Micro Jumped More Than 10%. Is the AI Server Maker Finally Turning a Corner?
The server maker's margins are recovering, and orders are stacking up. But a heavier balance sheet and an open investigation still cloud the picture.
Super Micro Jumped More Than 10%. Is the AI Server Maker Finally Turning a Corner?
Overview
Shares of Super Micro Computer (NASDAQ: SMCI) climbed more than 10% on Thursday, closing at about $31 after starting the day near $28. There was no major company news behind the move -- no earnings, no new contract -- just a sharp bounce in a stock that has been swinging hard with the rest of the artificial intelligence (AI) hardware group. Even after the jump, however, the stock is down about 31% over the past year and even further from its 52-week high.
So, what gives?
Details
Super Micro has never struggled to sell servers. What it has struggled to do is convince investors that the growth is worth the thin margins and the baggage that comes with it. That said, the underlying business has demonstrated notable improvements.
Source
Originally published at www.fool.com.
