Super Micro Computer, Inc. (SMCI): Influencers Outline Bear Case

We just covered Sell These 4 Stocks and Go All In on These 3 Stocks Before May 9th for 100x Returns? and Super Micro Computer, Inc. (NASDAQ:SMCI) ranks 4th on this list.

Super Micro Computer, Inc. (NASDAQ:SMCI) has had a topsy-turvy month. Despite posting non-GAAP EPS of $0.84, beating estimates by $0.22, and a revenue of $10.2 billion, for Q3 2026, the stock has suffered from negative publicity centered around an independent investigation into two company employees alleged to have illegally shipped billions of dollars worth of NVIDIA servers to China. These allegations, coupled with the history of accounting issues at the firm, have led influencers to argue that the finances of the company remain a vulnerability that could lead to further regulatory action or restatements. In addition to these problems, the reliance of the company on hyperscalers is also a potential fault line.

This fault line was exposed recently when independent research and consulting firm BlueFin Research reported, per republished reports on prominent publications like Seeking Alpha and The Street, that Super Micro Computer, Inc. (NASDAQ:SMCI) had lost a major deal with software giant Oracle. The deal was for 300 and 400 racks from Super Micro, at a cost of $3.5 million per rack, totaling between $1.1 billion and $1.4 billion. TikTokers are also highlighting that companies like Dell and Hewlett Packard Enterprise have ramped up their AI server offerings. Per these finance experts, these rivals have superior global supply chains and deeper enterprise relationships, which will eventually commoditize the market and squeeze the market share for Super Micro that is currently around 13%.

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