Super Micro Computer (SMCI) experienced an 11% stock drop this week despite reporting 123% revenue growth, primarily due to concerns over compressing gross margins. Goldman Sachs downgraded the stock, citing margin pressure and limited bargaining power with hyperscaler customers, while insider selling added to investor apprehension. Despite solid AI infrastructure demand, the market is demanding clearer proof of sustainable profitability from SMCI.
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Super Micro Computer (SMCI) Week in Review: 11% Stock Drop Despite 123% Growth
Super Micro Computer (SMCI) experienced an 11% stock drop this week despite reporting 123% revenue growth, primarily due to concerns over compressing gross margins. Goldman Sachs downgraded the stock, citing margin pressure and limited bargaining power with hyperscaler customers, while insider selling added to investor apprehension. Despite solid AI infrastructure demand, the market is demanding clearer proof of sustainable profitability from SMCI.