SMCI stock is falling. Is it worth buying when stocks are falling?

Even though the company recently suffered a major loss in the form of a devastating sell-off, many investors and traders are wondering if this isn’t a great time to stock up on cheap Super Micro Computer Inc. (NASDAQ: SMCI) stock or “buy while the price is low.”

Indeed, SMCI shares continued to fall as investors reacted to a devastating report from short-seller Hindenburg Research and the tech company’s announcement that it would have to delay filing its annual 10-K report, raising concerns about its long-term viability.

Positive signals for SMCI shares

On the other hand, the investment research platform Bar chart said SMCI shares “are poised for a long-term gross margin recovery, and supply chain disruptions that have driven component prices higher should smooth out over the coming year,” adding that:

“The management is optimistic, pointing to reduced production costs thanks to new plants in Malaysia and Taiwan. In addition, the company intends to expand operations to the Americas and Europe.”

Additionally, the company expects fiscal first quarter revenue of $6 billion to $7 billion, representing growth of 183% to 230%, and non-GAAP earnings per share (EPS) of $6.69 to $8.27.

At the same time, for fiscal 2025, SMCI management is forecasting revenue of $26 billion to $30 billion, which would imply annual growth of 74% to 101%. Analysts are forecasting earnings per share (EPS) of $28.50 in fiscal 2025, up 41.9% annually, and net income will increase another 11% to $31.63 in fiscal 2026.

SMCI Stock Price Forecast on Wall Street

It is also worth noting that reputable analysts are cautious about SMCI shares, rating them a “Moderate Buy” and expecting their price to reach an average of $978.50, which would imply a 24.05% increase from the current situation, according to the latest data. TipRank rankings data from September 2.

However, immediately following the Hindenburg report, Wells Fargo (NYSE: WFC) lowered its 2025 price target on SMCI shares from $650 to $375 while maintaining an “equal weight” rating, citing “uncertainty/concerns around revenue recognition and SMCI’s track record,” Finbold reported on Aug. 30.

Still, JPMorgan (NYSE: JPM) defended SMCI, arguing that the report contained “limited evidence of improper accounting beyond the reconsideration of 2020 allegations made by the SEC, and limited new information regarding existing and known business relationships with related companies owned by siblings of SMCI’s founder.”

Recently, the pseudonymous trading expert Commercial shot noted that SMCI stock is at a critical juncture, hovering dangerously close to its 100-week moving average (MA), which has also proven to be a resilient support level for SMCI stock and could trigger a 400% rally to a $2,000 price target.

SMCI Stock Price History

At the time of going to press, SMCI’s stock price was $437.70, down 2.48% on the day, a massive 27.89% decline over the past week, and a cumulative decline of 29.93% on the monthly chart, while posting a 53.34% year-over-year (YTD) gain, as of September 2.

So why did SMCI fall today and in recent weeks? The answer to the question “why are SMCI shares falling” may lie in the Hindenburg report, a delayed annual filing, but also in ongoing shipping delays due to supply chain issues and delayed Nvidia (NASDAQ: NVDA) Blackwell chips needed to address SMCI’s high-margin DLC.

Ultimately, stock market trends can change easily, which is why doing your own research, following SMCI stock price history and any relevant news regarding SMCI such as SMCI earnings release date, etc., is crucial when investing significant amounts of money in this stock, with or without a discount.

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