Early Bird Prime for November 15, 2026

Today, we're diving into the curious case of Super Micro Computer $SMCI ( ▼ 0.46% ). Down 13.23% this year, Super Micro has been caught in a whirlwind of federal export investigations, margin compression, and partner shake-ups.

But just when you thought the plot couldn't thicken any further, enter Louis Gerard of Permiat Research. This past week, Gerard upgraded Super Micro's stock from Sell to Hold. Why, you ask? Well, the company just had a massive revenue beat, up a staggering 299% year-over-year. However, Permiat said there are still some remaining issues with the company.

Now, let's talk about margins. Super Micro just posted a gross margin of 12.7%, up from 9.3% last year. This means they’re keeping more money from each sale. The bullish crowd is cheering, convinced that Super Micro is not just passing expensive hardware through to customers but actually retaining more profit per dollar of sales.

Super Micro’s Data Center Building Block Solutions is like the Swiss Army knife of tech offerings. It combines servers with networking, cooling, software, and services, all wrapped up in a neat modular package. Management claims this helps customers deploy AI infrastructure faster and more cost-effectively.

Should you buy Super Micro Computer’s stock right now in 2026 or avoid the stock? Here’s the answer…