What Happened After Jim Cramer Talked About These 13 Stocks

6. Super Micro Computer Inc. (NASDAQ:SMCI)

Number of Hedge Fund Holders: 45

Jim Cramer analyzed Super Micro Computer Inc. (NASDAQ:SMCI) and the reasons behind its massive price drop at the time. Going over the company’s fundamentals and potential, he concluded that the main reason for the stock’s decline, along with other tech names, was purely due to macroeconomic factors such as elevated interest rates back then. Here’s what he said:

 “All right, here’s one for you, how does a stock lose nearly a quarter of its value in a single session, as Super Micro Computer did last Friday when it plunged from $928 down to $713? […] As a matter of fact, I think they’re purely intellectually lazy thinking. There’s a simple reason Super Micro and its high price-to-earnings multiple have been getting hit over and over, because bond yields have been soaring. […] this is a market that’s become way more hostile towards richly valued growth stocks. […]

Super Micro’s become integral to the artificial intelligence people because it makes non-proprietary products that’ll help customers who are using Nvidia’s ultrafast chips. I wouldn’t put it in the same camp as Nvidia’s true partners like Cadence or Synopsys […] Super Micro, I put more in the Broadcom/Marvell Tech camp, as important ancillaries to Nvidia. […] In the end, the reason Super Micro went down had nothing to do with Super Micro and everything to do with the fact that interest rates are unable to find their footing. That’s what’s so important about this week.”

The stock is down by 56.82% since Cramer gave that analysis.

Super Micro Computer Inc. (NASDAQ:SMCI) focuses on the design and manufacturing of advanced server and storage solutions. On March 27^th, Cramer gave his thoughts on why the stock keeps declining recently:

“Now what happened in the service side here that was actually difficult was Super Micro. They provide hardware, but they also provide services. They, along with Arista Networks and Broadcom, they were all part of the data center story that people seem to have cooled on.”