Shares of server manufacturer Super Micro Computer Inc (NASDAQ:SMCI) closed Tuesday’s session lower, caught in a broader pullback among chip and AI-related stocks. Here’s what investors need to know.
What To Know: The sector-wide pressure follows reports that the high-profile “Stargate” AI venture is facing significant delays and scaled-back ambitions.
The $500 billion project, a joint initiative between SoftBank and OpenAI designed to massively expand U.S. AI infrastructure, has reportedly failed to secure any major data center deals six months after its announcement.
According to The Wall Street Journal, persistent disputes over strategy and control between SoftBank's Masayoshi Son and OpenAI's Sam Altman have crippled the project's momentum. Original plans for an immediate $100 billion investment have been shelved, with the focus now shifted to a much smaller facility in Ohio.
The Stargate slowdown is creating uncertainty around the timeline for massive AI hardware spending. While OpenAI has independently secured a major cloud capacity deal with Oracle, the struggles of its flagship infrastructure partnership are causing investors to temper near-term growth expectations.
This has led to a sell-off in hardware suppliers like SMCI Tuesday afternoon, whose valuations are heavily dependent on the continued, rapid build-out of AI data centers.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which assess stocks on four critical factors, SMCI demonstrates exceptional fundamental strength. The company earns its highest ratings for Quality with an outstanding score of 94.68, indicating a robust balance sheet and strong profitability.
This is followed closely by an excellent Growth score of 86.99, pointing to strong historical and projected expansion. The stock also maintains solid Momentum with a score of 75.29, reflecting recent positive price performance.
Its Value score is more moderate at 61.31, suggesting that while the stock is not considered overvalued, it may not be a deep bargain at its current price.
SMCI meanwhile has a 52-week high of $80.80 and a 52-week low of $17.25.
Read Also: AMD Stock Is Sliding Tuesday: What’s Driving The Action?
How To Buy SMCI Stock
By now, you're likely curious about how to participate in the market for Super Micro Computer — be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Super Micro Computer, which is trading at $49.99 at time of writing, $100 would buy you 2 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit off of the share price decline.
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