Last quarter, Super Micro Computer had a slim operating margin of just 3.2%. This could pose trouble in a cyclical downturn, which will eventually come for the AI market.

Slim margins and cyclicality Super Micro Computer is simply a middleman for computer chips and data centers. Nvidia has a 62% operating margin. Amazon Web Services (AWS) has a 37.5% operating margin.

Super Micro Computer is deeply undervalued as the market prices in ultra-conservative growth, despite strong financial performance and ongoing AI server demand. SMCI's strategic partnerships with ...

Analysts led by Simon Leopold initiated coverage on Super Micro with an Outperform rating and $41 target price. Shares were up 6.5% to $35.70 in early trading, outpacing the S&P 500’s 0.3% gain.

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 ...