WALL STREET'S MOST-AWAITED AI STOCK SPLIT OF THE FOURTH QUARTER .
Super Micro Computer (NASDAQ: SMCI) is set to complete its first-ever stock split on September 30, 2024, implementing a 10-for-1 split that will lower its share price to around $40. This comes after a remarkable 779% increase in its stock price over the past two years, fueled by soaring demand for AI infrastructure, leading to fiscal 2024 sales of $14.9 billion.
The company has integrated Nvidia's H100 GPUs into its AI-focused rack servers, enhancing its appeal among businesses seeking competitive advantages. However, this reliance also poses risks, including potential delays in GPU supply due to high demand and the looming threat of an AI bubble, which historically has led to significant downturns following overhyped trends.
Additionally, Super Micro faces scrutiny from short-seller Hindenburg Research over alleged accounting manipulation, alongside an investigation by the U.S. Justice Department. While CEO Charles Liang remains confident in the company's financial integrity, the delay in filing its annual report has raised concerns among investors.
As Super Micro's stock split arrives, the market awaits to see how it will impact retail investor sentiment and stock performance moving forward.
Super Micro Computer (NASDAQ: SMCI) is set to complete its first-ever stock split on September 30, 2024, implementing a 10-for-1 split that will lower its share price to around $40. This comes after a remarkable 779% increase in its stock price over the past two years, fueled by soaring demand for AI infrastructure, leading to fiscal 2024 sales of $14.9 billion.
The company has integrated Nvidia's H100 GPUs into its AI-focused rack servers, enhancing its appeal among businesses seeking competitive advantages. However, this reliance also poses risks, including potential delays in GPU supply due to high demand and the looming threat of an AI bubble, which historically has led to significant downturns following overhyped trends.
Additionally, Super Micro faces scrutiny from short-seller Hindenburg Research over alleged accounting manipulation, alongside an investigation by the U.S. Justice Department. While CEO Charles Liang remains confident in the company's financial integrity, the delay in filing its annual report has raised concerns among investors.
As Super Micro's stock split arrives, the market awaits to see how it will impact retail investor sentiment and stock performance moving forward.