Summary

• Super Micro Computer faces mounting challenges as it continues to lag peers like Foxconn in AI server growth and struggles with inventory and margin pressures.
• Management's FY26 revenue outlook has been repeatedly downgraded, reflecting lumpy performance and customer order volatility, undermining confidence in future results.
• Valuation appears cheap, but margin contraction and uncertain earnings growth make the stock a potential growth trap over the next 6 months.
• Given the unpredictable outlook and ongoing business risks, I am downgrading Super Micro Computer to a Sell rating.

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