Cisco

Super Micro remains under observation because the company's products may have brought Nvidia chips to China, even though they should not have ended up there. Initial investigations have so far found no connection to the management. Nevertheless, the issue remains a significant risk for the stock. All the more important is the new partnership with Cisco. A major customer is integrating Super Micro systems into its own AI Factory offering. This is a signal that Super Micro continues to be perceived as a relevant provider for AI infrastructure despite the recent uncertainty.

A comparison with Dell shows how much Super Micro has lagged recently. Over the past six months, Dell performed significantly better, while Super Micro only saw limited gains. Part of the skepticism is therefore already priced into the stock. Fundamentally, the stock appears cheap. 4. Growth of about 90 percent is expected for the current year, with around 24 and 20 percent projected for the two subsequent years. This combination explains why the stock is finding buyers again despite the risks. The price jump looks like a breakout from a multi-day bullish consolidation.

Those attempting the trade can use the break above the intermediate highs and orient themselves to the recent lows.