It has been a year of steady progress – and one massive dive – for Super Micro Computer (NASDAQ:SMCI) and its share price. And while the general trend has been a positive one, many investors are having a hard time coming back to the fold.Meet Samuel – Your Personal Investing ProphetStart a conversation with TipRanks’ trusted, data-backed investment intelligence
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It’s not necessarily just commercial worries that have been causing the hesitation, as a string of corporate governance hits have been buffeting the company.
The latest came a few months back, when the U.S. Department of Justice indicted three SMCI-linked individuals for conspiring to divert high-performance AI technology to China. Though SMCI wasn’t named as a defendant and immediately distanced itself from the individuals, the damage was done.
On the business side of the ledger, one of the big worries has been the company’s margins, which have been slipping. However, the company’s most recent earnings report delivered some very welcome news for investors, as non‑GAAP gross margin improved to 10.1% in fiscal 2026 Q3 (up from 6.4% in Q2).
