Shares of Super Micro Computer (SMCI) are rebounding in Friday's session after initially plummeting on news of a Department of Justice probe into alleged accounting violations, as reported by The Wall Street Journal. Defiance ETFs CEO & CIO Sylvia Jablonski joins Catalysts to discuss why the stock remains attractive despite these allegations.
Jablonski acknowledges the risk that the allegations could prove true but views the stock's recent drop as a buying opportunity. She emphasizes that if the allegations are invalid or can be addressed, Super Micro remains "critical to the future growth of AI infrastructure." Given the company's strong position in the AI market, Jablonski believes that once these allegations are resolved, "the stock goes back into its meteoric rise."
"Yes, there is some risk in the short-term that there's some volatility and some additional pullback, but I don't think that this company is necessarily going away. What they do is critical to the AI infrastructure, valuations or not. I think it's a company that is going to continue to skyrocket just because of the product that they deliver. Now, given this regulatory overhang we need to see what the result is," she tells Yahoo Finance.
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This post was written by Angel Smith