Stock splits tend to generate a lot of buzz among investors, and Supermicro is no different. Furthermore, the company's robust performance over the past couple of years has fueled an eye-popping surge in the share price, as the stock has gained 433% since early last year (as of this writing).

Needham sees Super Micro shares as a “value play on AI,” with strong revenue growth helping to justify a premium multiple relative to peer stocks.

Super Micro Computer (NASDAQ: SMCI) investors have been on a roller-coaster ride in 2024. The stock entered the year at $280, then it quickly peaked at nearly $1,200 in March. Since then, it's been a near-straight fall down, and the stock currently sits around $440.

Super Micro Computer stock (NASDAQ: SMCI) has seen a big sell-off in recent months, falling from highs of nearly $1,200 per share in March to about $445 presently.

Following a terrific start to the year, Super Micro Computer 's ( SMCI 4.59%) stock chart has undergone a stark reversal over the past six months. It has lost close to 60% of its value from its peak, and recent developments seem to have further dented investor confidence in the company.

Everybody knows that Super Micro Computer Inc. is top dog in the artificial-intelligence server market with a “dominant share,” according to Mizuho Securities — but that doesn’t mean investors should buy the stock.

SMCI’s 30% stock drop, due to a short-seller report, creates potential opportunities for competitors like Dell and HPE to step in and grab market share.

Super Micro's first-mover advantage could make it a significant beneficiary to growing AI investments, Needham says. Here's what investors need to know.