12 Most Undervalued Tech Stocks to Invest in Now

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

Forward P/E Ratio: 11.2

Earnings Growth: 119.32%

Number of Hedge Fund Holders: 33

Super Micro Computer, Inc. (NASDAQ:SMCI) specializes in high-performance computing solutions providing servers and storage systems for data centers and AI. However, despite its extensive portfolio of servers including SuperBlade, BigTwin, and Ultra servers the company has faced significant challenges in recent months.

The company generates 64% of its revenue from selling OEM appliances and large data center solutions to major industry giants including NVIDIA, Amazon, Intel, and Microsoft. Super Micro Computer, Inc. (NASDAQ:SMCI) grew its top and bottom line by 33.68% and 75.82%, respectively based on increased application of its servers and direct liquid cooling (DLC) systems.

However, Its financial situation came under the radar after a report released by Hindenburg Research, which raised allegations of accounting issues. The issues led to delays in annual and quarterly filing raising concerns about its compliance with NASDAQ listing rules. According to the most recent developments announced by the company on December 6, 2024, Super Micro Computer, Inc. (NASDAQ:SMCI) has been allotted an extension by NASDAQ till February 25, 2025, to file its annual and quarterly report. Analysts are optimistic regarding its future growth prospects and stated management files the required documents within the allotted time. It is one of the most undervalued tech stocks to invest in now due to its cheap valuation.

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.”

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