1 'Strong Buy' AI Server Stock to Buy Instead of Super Micro Computer

Until a few months back, analysts and investors were extremely bullish on Super Micro Computer (SMCI), a server maker that's part of the artificial intelligence megatrend. SMCI stock rallied from $4 in July 2022 to a record high of $122.90 in March 2024, the same month it joined the S&P 500 Index ($SPX). Today, the hardware stock trades 75% below all-time highs, burning significant investor wealth in the process. 

In recent months, noted short-seller Hindenburg Research has accused Super Micro of accounting manipulation. To make matters worse, SMCI’s auditor, Ernst & Young, resigned from the post, saying it is “unwilling to be associated with the financial statements prepared by management.”