Jim Cramer’s List of Stocks that Finished Dead Last

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

Number of Hedge Fund Holders: 47

Super Micro Computer, Inc. (NASDAQ:SMCI) is engaged in developing and manufacturing high-performance server and storage solutions. The company provides a wide variety of products, such as complete server systems, modular blade servers, workstations, networking devices, and various server subsystems.

Its offerings also include application-optimized server configurations and essential management software. Beyond hardware, it focuses on services like integration, configuration, software upgrades, and technical documentation.

Cramer mentioned the company and said:

“… The S&P component that finished dead last for the quarter, down 49%, was none other than Super Micro Computer, a partner of Nvidia that’s integral to the data center plumbing we need for artificial intelligence.”

Recently, Super Micro Computer (NASDAQ:SMCI) faced challenges that impacted its stock performance. For example, on September 26, a report from The Wall Street Journal indicated that the Department of Justice is investigating the company, though neither the DOJ nor Super Micro has confirmed this inquiry.

However, it is not the first time that the company has been investigated. In 2020, the Securities and Exchange Commission fined the company $17.5 million for accounting issues related to revenue recognition practices.

Cramer also said, “Look, Super Micro Computer’s a good company even if its stock went to insane levels earlier this year.”

Scout Investments, Inc. stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its Q2 2024 investor letter:

“Super Micro Computer, Inc. (NASDAQ:SMCI) was the top detractor to returns in the second quarter. Super Micro designs and manufacturers server solutions based on modular and open-standard architecture. This modular approach combined with a strong engineering culture helps the company to supply the market with advanced servers and rack-scale compute solutions quickly. After an impressive return in the first quarter, the company offered disappointing near-term earnings guidance, though we do not believe its long-term opportunity has diminished. We expect continued strong growth for several years, although the range of outcomes is quite wide; it is difficult to forecast AI server market growth with precision.”