One of the biggest AI stocks of the year hit with downgrade from JPMorgan

Published On Sep 6, 2024, 12:31 PM

Super Micro Computer (SMCI), a key player in the AI sector, has faced a significant drop in its stock price, losing over 30% since the delay of its annual report following allegations of accounting manipulation by short seller Hindenburg Research. JPMorgan has downgraded the stock from Overweight to Neutral and reduced its price target dramatically from $900 to $500, citing uncertainties surrounding the company's compliance with financial reporting regulations. Despite this, Super Micro's stock has increased by 35% year-to-date. Analysts are advising new investors to stay on the sidelines until the company resolves its reporting issues.