10 Best Affordable Tech Stocks To Invest In Now

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

Forward P/E Ratio: 12.2

Earnings Growth This Year: 27.78%

Number of Hedge Fund Holders: 33

Super Micro Computer, Inc. (NASDAQ:SMCI), is a technology company that specializes in manufacturing high-performance services and storage systems. Its products are critical for cloud computing, data centers, and artificial intelligence. It is one of the best affordable tech stocks to invest in now.

The company is recognized as one of the leading tech providers fueling the AI revolution. It has grown its revenue and net income by 34% and 76%, during the past 5 years, respectively. However, the company has been in the grey due to a series of challenges regarding its filings with the SEC.

The challenge appeared when Super Micro Computer, Inc. (NASDAQ:SMCI) was unable to file its 10-K form for the latest fiscal year ending June 30, 2024, for which the deadline was August 29. The company has still not been able to file the form and is at threat of being delisted from the NASDAQ stock exchange.

Management has appointed an independent auditor tasked with following the compliance plan, which if expected by the stock exchange will give the company another 180 days to file the forms.

The delay and threat of delisting have been impacting the share price of the stock. On the other hand, the update on first quarter results for fiscal 2025, indicated that the company is expecting net sales to be between $5.9 billion to $6 billion. The midpoint of the expected net sales range points towards an 181% increase year-over-year, indicating that demand for its products still remains strong. The stock was held by 33 hedge funds in Q3 2024, as per Insider Monkey’s database.

Columbia Acorn Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its Q3 2024 investor letter:

“Super Micro Computer, Inc. (NASDAQ:SMCI) had a tough quarter due to a confluence of negative events. It declined, but is still up significantly for the year. While demand for the company’s AI server racks remains strong, with revenue up over 100%, gross margins have fallen sharply for two straight quarters, implying a price war. In addition, Super Micro was the subject of a short-seller report and a delay in filing its annual report with the SEC. We have been taking profits in the stock all year and have only a small position, which we are maintaining given the strong performance and demand for Super Micro’s AI racks and a depressed stock valuation.”