15 AI Stocks That Are On Sale

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

Number of Hedge Fund Holders: 47

Expected Earnings Growth: 52.9%

P/E Ratio: 12.5

Super Micro Computer, Inc. (NASDAQ:SMCI) is an information technology company that offers high-performance server and storage solutions based on modular and open architecture. It is based in San Jose, California.

Many investors have flocked to Super Micro Computer, Inc. (NASDAQ:SMCI) in the past, considering its essential role in AI since server and storage services are needed to build the infrastructure that supports next-generation technologies and complex AI models. Because of this, Super Micro Computer, Inc. (NASDAQ:SMCI) saw positive second-quarter results, with revenue coming in at $1.27 billion.

Another piece of news of interest to those considering Super Micro Computer, Inc. (NASDAQ:SMCI) these days is that the stock is due for a stock split this October. The initial split announcement resulted in shares rising a fair amount. However, they have since fallen down. The reasons for this decline are multiple, starting with the fact that Hindenburg Research has recently alleged in a short report that Super Micro Computer, Inc. (NASDAQ:SMCI) is plagued by some flawed accounting practices – after which the company responded by delaying its annual filing for fiscal 2024.

This factor primarily has resulted in Super Micro Computer, Inc. (NASDAQ:SMCI) shares losing a significant chunk of their valuation this past month, which may make many consider it to be worth checking out this stock while it’s trading low. However, more prudent investors seem to be waiting for the accounting practices issue to be resolved, and the stock split to occur before they consider buying this AI stock on sale.

There were 47 hedge funds long Super Micro Computer, Inc. (NASDAQ:SMCI) in the second quarter, with a total stake value of $1.5 billion.