Regarding sheer relevance, it’s difficult to overlook the fundamental case for Super Micro Computer (SMCI). Specializing in high-performance servers that undergird artificial intelligence protocols, SMCI stock used to be a smoking-hot entity. Unfortunately, it also attracted serious controversy and a platoon of naysayers, derailing its extraordinary bullish rally. Still, a brewing comeback may have long legs, which could appeal to speculators, buy-the-dip specialists, and long-term value investors alike.
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However, investors are advised to ignore the lousy PR smell because Super Micro is no stranger to making headlines. In particular, the company’s accounting woes have been well documented, plaguing the tech giant for months and weighing on sentiment like a monkey on its back. Further, management failed to file its annual reports on time, leading to Nasdaq issuing a sharp warning: submit required documents by Feb. 25 or risk getting the boot.
Fortunately, Super Micro is getting its act together in time. What’s more, SMCI stock call options may be mispriced, allowing daring bullish speculators to profit from the mismatch. All things considered, I am bullish on SMCI stock.
SMCI stock has recently experienced significant positive momentum due to management’s efforts to right a sagging ship. Last week, Super Micro CEO Charles Liang announced that the company’s second-quarter revenues are projected to hit ~$5.65 billion. On paper, this forecast implies a 54% year-over-year growth rate.
Looking over the horizon, management is targeting $40 billion in sales for FY2026, implying robust growth from $23.5 billion to $25 billion. Market participants were clearly impressed with these figures, sending SMCI stock 26% higher last week.
What could be most intriguing about Super Micro from a speculative standpoint is that the options market could be mispricing the derivatives underlining SMCI stock. In fact, there is a strong likelihood that SMCI call options are cheaper than they should be. Markets are imperfect and, at times, can misprice assets, thereby making particular trades more probable. This could be one of those times with SMCI stock.
First, SMCI stock enjoys an upward bias. A position entered into SMCI at the beginning of the week has a 53.58% chance of rising by the end. Over four weeks, the long odds rise to 57.79%, according to options pricing data.