Super Micro Computer (SMCI 0.64%) stock is seeing a big pullback in Thursday's trading. The company's share price was down 12% as of 2 p.m. ET amid flat trading for the S&P 500 index and a 0.6% decline for the Nasdaq Composite.
NASDAQ: SMCI
Key Data Points
Supermicro stock is losing ground today in conjunction with broader pullbacks for tech stocks. The company's share price is heading lower following recent analyst coverage, and Nvidia's recent Q4 report may also be weighing on the stock.
Supermicro stock is giving up some of yesterday's gains
Supermicro's valuation rocketed higher yesterday after the company submitted its delayed 10-K filing to the Securities and Exchange Commission (SEC) and closed the door on concerns the stock would be delisted from the Nasdaq stock exchange. But investors are taking profits on the heels of yesterday's pop and also reducing exposure to AI stocks after Nvidia's Q4 report yesterday.
Adding another bearish pressure for Supermicro stock, Barclays published new coverage on the company yesterday that raised concerns about the strength of the business's competitive moat and ongoing reputational issues tied to accounting concerns and other dynamics. While Barclays acknowledged that Supermicro has a leadership position in the artificial intelligence (AI) server market, the firm still sees too much risk to make shares a worthwhile buy.
What's next for Supermicro?
With its delayed reports now filed with the SEC, Supermicro stock has cleared a vital hurdle. The reports arrived without any major restatements of previously issued results, and the stock is no longer in danger of being delisted from the Nasdaq stock exchange.
Barclays had suspended coverage on the stock due to the delayed earnings filings, but it reinstated coverage with an equal weight rating. The firm's analysts set a one-year price target of $59 per share on the stock. While the analysts highlighted concerns about the company's outlook, their one-year price target still implies 31% upside potential as of this writing.
