Why Super Micro Computer Stock Is Sinking Today
Super Micro Computer (NASDAQ: SMCI) stock is losing ground in Tuesday's trading. The company's share price was down 5.9% as of 3:15 p.m. ET and had been down as much as 9.9% earlier in the day's trading.
Supermicro is falling on the heels of recent coverage on the stock from J.P. Morgan. While J.P. Morgan's analysts said that orders for Supermicro's servers continued to be robust despite recent controversies surrounding the company, it maintained an underweight rating on the stock and a one-year price target of $23 per share.
J.P. Morgan's analysts recently met with Supermicro's management and came away with some encouraging conclusions. The analysts believe that Supermicro has seen no significant loss of orders to competitors despite some reports suggesting that this was occurring. The company said that it was planning to release new products in 2025 and that production at its Malaysia plant is on track to begin scaling up in the first half of next year.
Source Fool.com
