SMCI - Super Micro Computer (INQ referenced)

Momentum is good but looks extended. Would require risking 27% to the 200-day MA, which is too much. Ross passes on this one.

Hyperscale GPU up 26% in after hours. Mentioned as a name moving significantly in overnight trading.

Dell mentioned as being at all-time high due to government partnerships and Nvidia collaboration. Part of the onshoring of AI infrastructure theme.

SMCI mentioned as up 2.3% in after-hours. Implied positive sentiment as part of the AI infrastructure buildout.

Extended and lagging, had accounting issues and CFO stepped down, too wild and volatile despite being in semiconductor space

Part of ZipTrader 25 aggressive growth/speculative picks, up 55.98% in one month despite getting 'a lot of hate'.

Host notes SMCI is up 17% on the day alongside other chip names. No explicit recommendation given.

Despite revenue miss ($10B vs $12B expected), EPS beat by 34% and gross margins improved to 9.9% non-GAAP (vs 9.7% YoY). Stock surged from down 7% to up 19% as investors focused on margin improvement. Hosts note it's an important AI infrastructure stock that had been beaten down.

Host avoids SMCI due to legal charges and management issues, including allegations of sending restricted technology to China. He doesn't want to touch companies with these problems.

While SMCI trades at 7x earnings growing 80%, the host warns of serious red flags: co-founders allegedly blowing off serial numbers, accounting shenanigans, Oracle dropping their contract, and risk of the company being acquired at pennies on the dollar or executives facing prison. He says retail investors ignore the risk side of risk-reward.