Computer Stock Super Micro Buries China Hack Rumors And Build … – Investor's Business Daily
BREAKING: Market Rally Isn’t Finished, But Growth Giants Lag
Super Micro Computer (SMCI) is the top-performing computer stock of 2022. It’s gained a staggering 76% so far this year, compared to the S&P 500’s decline of over 20%.
The San Jose tech hardware provider makes high-performance servers and storage products, for applications in artificial intelligence, 5G and cloud computing. It operates under brand names that include Super Micro, Server Building Block Solutions and We Keep It Green. The product line includes servers, blades, GPU systems, motherboards, chassis, storage and networking systems as well as server management software.
Super Micro stands out as an IBD Sector Leader. Sector Leaders are stocks that have shown exceptionally strong performance compared to their peers.
In 2018, Super Micro’s motherboards were reportedly hacked, allowing China to get a backdoor into U.S. corporate intellectual property. After the Bloomberg exclusive, Apple, Amazon and other companies cut ties with Super Micro. The company suffered an enormous revenue hit when Apple scrapped several thousand Super Micro servers while Amazon sold a Chinese data center.
An independent audit did not reveal any hack through Super Micro’s products. But the company exercised extreme caution and announced plans to move manufacturing out of China. It still disputes government and media allegations.
With that incident fading from memory, this computer stock is clearly poised for strong performance amid its recent entry into the S&P 400 Midcap Index.
SMCI stock has perfect 99 IBD Composite, Earnings Per Share, and Relative Strength Ratings.
It ranks first in the Computer-Hardware/Peripherals group, which holds sixth place among IBD’s 197 industry groups. Other stocks in the group include: Logitech (LOGI), Dell (DELL) and HP (HPQ).
Its Accumulation/Distribution Rating of “B+” indicates strong interest in Super Micro from institutional investors. Fund ownership has been rising in the past six months, according to IBD MarketSmith, with 52% of mutual funds now owning shares.
The computer stock joined the S&P 400 Midcap Index on Dec. 22. Shares surged on strong volume ahead of, and after the news. SMCI stock is trading solidly above its 200-day line and appears to be forming support at its 50-day line.
The computer stock broke out of a cup base in strong volume in November and hit a 52-week high, after beating earnings estimates. Sales grew 79% to $1.8 billion while earnings of $3.42 per share showed an astounding 490% growth.
Please follow VRamakrishnan @IBD_VRamakrishnan for more news on growth stocks.
YOU MAY ALSO LIKE:
Bank Of America Names Top 11 Stock Picks For 2022
Warren Buffett Finally Throws In The Towel On 4 Lousy Stocks
Learn How To Time The Market With IBD’s ETF Market Strategy
Find Today’s Best Growth Stocks To Watch With IBD 50
Join IBD Live Each Morning For Stock Tips Before The Open
12/23/2022 The market rally is ailing, but still fighting. Celsius, Shift4Payments lead growth stocks to watch as giants such as Tesla,…
12/23/2022 The market rally is ailing, but still fighting. Celsius, Shift4Payments…
Tesla’s two megamarkets — North America and elsewhere — face distinct but different challenges in 2023. (© Dave Cutler)
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2022 Investor’s Business Daily, LLC. All rights reserved