Super Micro Computer (NASDAQ:SMCI) Stock Undergoes 10-for-1 Split

Server maker Super Micro Computer (SMCI) has undergone a 10-for-1 stock split and the company’s shares will begin trading at a lower price when markets open on October 1. The stock split takes Super Micro Computer’s share price down to $41.64 per share based on a closing price of $416.40 on September 30. Existing stockholders will receive 10 shares for each one they already own. Super Micro Computer is the latest company in the artificial intelligence (AI) space to split its stock. Chipmakers Nvidia (NVDA) and Broadcom (AVGO) each split their stocks on a 10-for-1 basis this summer. When Super Micro announced the stock split on August 6, its share price was considerably higher, trading at $616.94, which is 33% above where the stock finished trading on September 30. In this year’s first quarter, SMCI stock rose 332% to hit an all-time high of $1,229.00 per share and lead gains among securities listed on the benchmark S&P 500 index. However, the stock is now trading 66% below its record high due to valuation concerns and a controversy involving the company. SMCI Brought Low by a Short Seller Report Some analysts began to sound the alarm on SMCI stock as it more than quadrupled in the first few months of this year, claiming that the company was emblematic of the hype surrounding AI. Super Micro Computer makes servers that run AI microchips and processors developed by companies such as Nvidia and Broadcom. More recently, SMCI stock has been brought low by a critical report from notorious short seller Hindenburg Research. On August 27, Hindenburg published a report accusing Super Micro Computer of accounting malfeasance. The company denied the allegations, but a day later announced that it was delaying filing its annual report with the U.S. Securities and Exchange Commission (SEC) as it reviews its accounting procedures. The situation has sent SMCI stock sharply lower in recent weeks. Most recently, it was reported on September 28 that the server maker is being investigated by the U.S. Justice Department following the Hindenburg report. Is Super Micro Computer Stock a Buy? Super Micro Computer’s stock has a consensus Hold rating among 14 Wall Street analysts. This rating is based on three Buy, 10 Hold, and one Sell ratings issued in the past three months. The average price target on SMCI stock of $643.62 implies 54.57% upside from current levels. Read more analyst ratings on SMCI stock