Super Micro Computer (SMCI)
Source: Connect world / Shutterstock.com
Super Micro Computer (NASDAQ:SMCI) is one stock I remain bullish on in the long run due to its ability to benefit from the entire AI sector. However, this stock has jumped 175%-plus year-to-date and is up 737% from its pre-pandemic price. I agree that this stock does have a solid underlying business and promising future potential. But much like Nvidia, SMCI is priced too ahead of the curve right now.
The company’s revenue declined by 5.3% YoY in the latest quarter. Looking further, it will bounce back and is expected to stay in the 20% range for the next few years. Indeed very promising, but I see no reason why one should pay $230 a pop for this stock right now. A recession is on the horizon, and waiting a few more months should bring this valuation down to much more compelling levels.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
More From InvestorPlace
The post 3 Growth Stocks to Sell Before They Lose Their Momentum appeared first on InvestorPlace.