10 AI News You Shouldn’t Miss

5. Super Micro Computer, Inc. (NASDAQ:SMCI)

Number of Hedge Fund Holders: 47 

Super Micro Computer, Inc. (NASDAQ:SMCI) is a global technology leader that develops and manufactures high-performance server and storage solutions based on modular and open architecture. It is a leading provider for creating Nvidia-based clusters of servers used for training and deploying AI models.

On November 6, Mizuho Securities equity analyst Vijay Rakesh suspended coverage of Super Micro Computer, Inc. (NASDAQ:SMCI). The analyst noted that “Despite a white-hot AI server market where demand well exceeds supply”, SMCI has lowered its sales targets for the upcoming quarters, blaming the cut on a shortage of Nvidia’s (NVDA) latest AI processors, called Blackwell. The company’s auditor, Ernst & Young, has also resigned due to governance and transparency concerns, adding to its woes. It also disclosed that it had still not filed a 10-K annual report, previously pushed back in late August, and with uncertainty about its filing.

“Due to lack of full financial detailed and audited statements, we are suspending our rating and price target for SMCI. While SMCI is growing its top line 100%+ year over year as an AI leader positioned to ramp on Nvidia Blackwell, near term there are uncertainties with (the) Nov. 16 Nasdaq approval and audited 10-K filing.”

-Mizuho Securities analyst