Super Micro: The Takeoff Is Just Getting Started (Upgrade)

Super Micro Computer, Inc. investors are lauding the good old days again, as SMCI's recent outperformance primes it for a potentially decisive breakout. SMCI's expansion into Europe and partaking in sovereign AI themes positions it as a credible first-mover, though European demand and regulatory hurdles present risks. Valuation has rebounded markedly, with SMCI trading at a forward EBITDA multiple in line with tech sector median, not significantly overvalued yet.