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# Super Micro Computer: The Time Correction Is Not Yet Over (Archive)
- URL: https://www.huntingalphas.com/super-micro-computer-the-time-correction-is-not-yet-over-archive/
- Published: 2024-06-10T12:01:00.000Z
- Updated: 2026-02-27T09:50:31.000Z
- Description: SMCI’s stellar AI-driven growth persists, but margins, ROICs, and valuation temper conviction.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, SMCI, Tech

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- As expected in my last article on the stock, SMCI has had a time correction. I believe this is not yet over:
- Growth continues to be very strong and it is heartening to see leading revenue indicators grow at 40% YoY, with record high backlog levels.
- Increased competitive intensity and management's commentary on margin guidance and pricing strategy make me believe there is a risk to undershooting long-term gross margin targets.
- Together with lower expected margins, increased working capital intensity via higher inventories and lower payable days are a recipe for mild ROIC erosion.
- SMCI trades at a deserved premium to its peers due to a better growth profile, but I believe a 40% premium is too much for comfort. Technically, the time correction continues as there are no signs of strong buyers to resume an uptrend.

Read the full article [here](https://seekingalpha.com/article/4698365-super-micro-computer-stock-time-correction-not-yet-over?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*