SMCI - RETRACED from $67 to $50 - that is good enough 4 me.
the retracement meets all criteria, time to go long.
If SmCi delivers on its projections of $40 Billion in revenue by 2026, that means that in 1 year the shares trade for $197 each.
Super Micro Computer (SMCI) has recently experienced a significant pullback, retracing 20% from $67 to $50, which presents an attractive entry point for long positions. This correction offers a compelling opportunity to invest in a company with strong fundamentals and growth potential.
The stock's valuation metrics are particularly appealing:
Low P/E ratio: SMCI's price-to-earnings ratio is significantly lower than the peer average, indicating the stock is undervalued compared to its competitors.
Attractive P/S ratio: With an enterprise value/revenue that is relatively low, SMCI appears undervalued relative to its sales performance.
Growth potential: The company has demonstrated impressive revenue growth, showcasing its strong market position.
Analyst optimism: Recent analyst actions reflect confidence in the company's prospects.
Industry leadership: SMCI has emerged as a prominent player in the technology hardware industry.
Given these factors, SMCI appears undervalued and poised for potential upside. The recent pullback provides an opportune moment to establish or increase long positions in this promising tech stock.
If SmCi delivers on its projections of $40 Billion in revenue by 2026, that means that in 1 year the shares trade for $197 each.
Super Micro Computer (SMCI) has recently experienced a significant pullback, retracing 20% from $67 to $50, which presents an attractive entry point for long positions. This correction offers a compelling opportunity to invest in a company with strong fundamentals and growth potential.
The stock's valuation metrics are particularly appealing:
Low P/E ratio: SMCI's price-to-earnings ratio is significantly lower than the peer average, indicating the stock is undervalued compared to its competitors.
Attractive P/S ratio: With an enterprise value/revenue that is relatively low, SMCI appears undervalued relative to its sales performance.
Growth potential: The company has demonstrated impressive revenue growth, showcasing its strong market position.
Analyst optimism: Recent analyst actions reflect confidence in the company's prospects.
Industry leadership: SMCI has emerged as a prominent player in the technology hardware industry.
Given these factors, SMCI appears undervalued and poised for potential upside. The recent pullback provides an opportune moment to establish or increase long positions in this promising tech stock.
Note
Super Micro Computer (SMCI) management has provided ambitious projections for the company's future revenue during their most recent earnings call. Specifically, they stated:
For fiscal year 2025 (FY25), SMCI expects revenue in the range of $23.5 billion to $25 billion.
Looking ahead to fiscal year 2026 (FY26), management has set an even more aggressive target, projecting revenue of $40 billion.
These projections highlight the company's confidence in its growth trajectory, particularly driven by strong demand in the AI sector and its leadership in liquid cooling technology for data centers. The management's optimism is based on SMCI's position as a premier US-based data center infrastructure solution provider and its ability to capitalize on the ongoing technology transition in the industry
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.