Super Micro’s 123% Q2 Revenue Surge Highlights 21.7x Valuation Gap
SMCI•SMCI stock remains at 21.7x earnings, well below industry peers at over 45x, despite posting a 123% year-over-year revenue increase in Q2. The company has appointed a chief compliance officer, launched a forensic review and aided Taiwanese authorities following a DOJ indictment of board member Yih-Shyan Liaw.
1. Scandal Discount Pressures Stock
Super Micro Computer has traded at a significant discount since a March DOJ indictment of board member Yih-Shyan Liaw, even though the company itself was not named as a defendant, weighing on investor sentiment.
2. Exceptional Q2 Financial Growth
The company reported a 123% year-over-year revenue increase in its latest quarter, driven by surging demand for its AI-optimized server offerings and expanded data center deployments.
3. Compliance Overhaul and Cooperation
SMCI has appointed a chief compliance officer, initiated a comprehensive forensic review and collaborated with Taiwanese authorities, resulting in targeted server seizures to strengthen its governance framework.
4. Valuation Gap and Sector Rally
Despite strong fundamentals, SMCI trades at 21.7x forward earnings versus peers above 45x and saw a 12.2% share price jump after Dell Technologies rallied 33% on better-than-expected AI server earnings.
