Super Micro shares tumble over a month as DOJ probe and margin slump spark analyst optimism
Super Micro Computer's stock fell roughly a third in the past month, sliding to $26.99 after a Department of Justice investigation and a drop in gross margin. Revenue surged 298% year‑over‑year to $19.9 billion, but gross margin slipped to 12.8% and one customer represented 44% of sales. Raymond James senior analyst Simon Leopold kept a $65 price target, implying about 140% upside despite the legal risk.
Why it matters
Leopold’s target suggests a large upside potential for investors if the DOJ probe does not result in penalties, according to the analyst’s note. However, the margin decline and concentration risk could pressure cash flow and earnings, as noted in the company’s earnings release.
Key facts
- 1The stock closed at $26.99. 247wallst.com
- 2Quarterly revenue was $19.9 billion, up 298% year over year. 247wallst.com
- 3Gross margin fell to 12.8%. 247wallst.com
- 4One customer accounted for 44% of revenue. 247wallst.com
- 5Raymond James analyst Simon Leopold maintains a $65 price target, implying 140.8% upside. 247wallst.com
- 6A Manhattan DOJ probe into possible China diversion of Super Micro hardware was reported. 247wallst.com
Open questions
- Material 1 says the stock fell 30.92% over one month, while material 2 says it fell 33% (same basis).
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.