Supermicro Stock Is Up By More Than 70% in 30 Days. Is It a Buy?

Supermicro Stock Is Up By More Than 70% in 30 Days. Is It a Buy? Marc Guberti, The Motley Fool Mon, June 8, 2026 at 7:45 PM GMT+2 4 min read SMCI NVDA Super Micro Computer   (NASDAQ: SMCI) might be one of the most volatile artificial intelligence (AI) stocks .

For instance, the stock rallied 70% over the past month but has cooled off a bit in recent days. The ups and downs of the five-year stock chart explain why investors are cautious. Supermicro (as it is also known) has traded up by more than 1,000% over the past five years, but it has also seen many 20% to 50% drops in that time and remains well removed from all-time highs.

Is Supermicro's recent surge the start of a major comeback or a rally that's bound to lose momentum? Here's what investors should consider. Missed Nvidia in 2009?

This Rare Signal Is Flashing Again.   In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.  For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.

  Continue » Image source: Getty Images. High year-over-year sales growth masks declining sequential growth Supermicro creates custom server motherboards, liquid-cooling racks, and other AI infrastructure that help AI chips run efficiently. Its recent revenue results look good year over year, but are a bit concerning on a sequential level.

Supermicro reported 123% year-over-year revenue growth in its fiscal 2026 third-quarter results (ended March 31, 2026). However, it also represented a 19% sequential dip. Other leaders in the AI build-out, like Dell Technologies and Micron Technology,  have been posting high sequential growth in recent quarters, which makes Supermicro's declining sequential growth concerning.

Supermicro also hasn't been able to translate the AI boom into rising net profit margins. While Dell's net profit margins have soared as it's capitalized on the AI opportunity, Supermicro is still posting net profit margins at or below 5%. Trust issues overwhelm the bullish narrative The frustrating thing about Supermicro stock is that it is in the right industry, but has damaged its trustworthiness among investors.

That's the major red flag that has shown up repeatedly in the company's history. Short-seller firm Hindenburg Research accused Supermicro of accounting manipulation two years ago, and to this day, the stock is trading below its price per share when the short report was announced. A lot of drama unfolded, with Supermicro delaying its 10-K, which was supposed to come out less than one week after the report was published, and finding itself on the brink of getting delisted.

The Hindenburg Research report detailed Supermicro being temporarily delisted in 2018 for not filing financial statements and being charged by the Securities and Exchange Commission for "widespread accounting violations" in 2020. Leadership didn't change much between 2018 and 2024, and it hasn't changed much now, either. Story Continues Supermicro said it did not engage in any wrongdoing after conducting an internal investigation.

This short report and the fallout fractured trust, which continues to play out to this day. For instance, Supermicro was the centerpiece of a $2. 5 billion chip-smuggling scandal earlier this year, as it attempted to circumvent export controls.

One of Supermicro's co-founders was involved and resigned shortly after the news came out. The $2. 5 billion chip smuggling scandal comes as the still-active accounting investigation intensifies.

Supermicro wasn't cleared of that older issue. Investors just haven't heard anything new about it like they did when Hindenburg first released its report. In the meantime, don't trust the company's guidance.

In its fiscal 2026 Q2 report, management guided for at least $12. 3 billion in Q3 FY26 revenue. Supermicro only delivered $10.

2 billion when results came out. It's hard to take Supermicro's optimistic Q4 FY26 guidance seriously in this context. Until the investigation's full results are revealed, Supermicro stock should be avoided.

Should you buy stock in Super Micro Computer right now? Before you buy stock in   Super Micro Computer , consider this: The Motley Fool   Stock Advisor   analyst team just identified what they believe are the   10 best stocks   for investors to buy now… and   Super Micro Computer   wasn’t one of them.  The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.

Consider when   Netflix   made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,   you’d have $443,191 ! *  Or when  Nvidia   made this list on April 15, 2005...

if you invested $1,000 at the time of our recommendation,   you’d have $1,258,838 ! * That performance is why people listen. With a track record of   beating the S&P 500 by nearly 5x ,   Stock Advisor   offers a distinct advantage.

Don't miss the latest top 10 list, available with   Stock Advisor , and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of June 8, 2026. Marc Guberti has no position in any of the stocks mentioned.

The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy . Supermicro Stock Is Up By More Than 70% in 30 Days.

Is It a Buy?