This Little-Known ETF Is Making Big Moves -- Is It a No-Brainer Buy?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2024
0mins
Source: Fool
The GraniteShares 2x Long Coinbase ETF has outperformed the market significantly in recent months, but it comes with high risks.
The leveraging process can amplify both gains and losses.
The underlying Coinbase stock already looks rather expensive, and leveraged ETFs add unique risks on top of that volatile base.
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Analyst Views on SMCI
Wall Street analysts forecast SMCI stock price to rise
12 Analyst Rating
5 Buy
5 Hold
2 Sell
Hold
Current: 37.100
Low
34.00
Averages
46.82
High
63.00
Current: 37.100
Low
34.00
Averages
46.82
High
63.00
About SMCI
Super Micro Computer, Inc. is an application-optimized Total IT solutions provider including server, artificial intelligence (AI) systems, storage, information of technology (IoT) devices, switches, software, and support services. Total IT Solutions include complete servers, storage systems, modular blade servers, workstations, full-rack scale solutions, networking devices, server sub-systems, server management and security software. Its products are designed and manufactured in-house (in the United States, Taiwan, and the Netherlands). Its portfolio of Server Building Block Solutions allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from the Company’s flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Super Micro Computer Reports 123% Sales Growth in Q3
- Strong Sales Performance: Super Micro Computer reported net sales of $10.2 billion for Q3 of Fiscal 2026, reflecting a remarkable 123% year-over-year increase, indicating robust demand in the AI infrastructure market; however, investor sentiment remains cautious regarding future performance.
- Margin Challenges: Despite impressive sales growth, Super Micro's gross margin remains below 10%, meaning a significant portion of revenue is consumed by high costs, which limits profitability and may affect its attractiveness to investors moving forward.
- Trust Issues from Accounting Problems: The company has previously faced accounting issues due to auditor resignations, which raised concerns about its financial controls and transparency; although no major issues have arisen recently, this history may still undermine investor confidence.
- Competitive Market Pressures: Super Micro's growth is heavily reliant on sustained high demand driven by AI; if demand weakens, it could adversely impact performance, necessitating careful risk-reward assessments from investors.
See More
Supermicro Partners with Verda to Advance AI Infrastructure
- Partnership Announcement: Supermicro has partnered with Verda, a leading European AI cloud provider, to deploy NVIDIA GPU-accelerated rack-scale systems, aiming to enhance high-performance AI infrastructure for frontier model developers and enterprises across Europe.
- Technological Edge: The integration of Supermicro's DCBBS design with the latest NVIDIA Blackwell architecture enables Verda to rapidly deploy energy-efficient AI infrastructure, thereby enhancing its competitive position in the global market and addressing urgent customer demands for AI capabilities.
- Sustainability Commitment: Verda operates on 100% renewable energy and collaborates with local utilities to repurpose excess heat from its data centers for heating up to 15,000 homes, further advancing its sustainability goals and demonstrating corporate social responsibility.
- Deployment Efficiency: Supermicro's pre-tested and validated systems, along with its rack-scale integration capabilities, allow Verda to accelerate deployment timelines, reduce operational risks, and optimize system performance, supporting long-term operational efficiency and lowering total cost of ownership.
See More
Verda Deploys Supermicro's Liquid-Cooled Systems for AI Cloud Infrastructure
- Infrastructure Upgrade: Verda has selected Supermicro's NVIDIA Blackwell-accelerated systems to enhance its modern AI cloud infrastructure across Europe, significantly boosting AI computing capabilities for frontier model developers and regulated enterprises, thereby increasing market competitiveness.
- Sustainability Commitment: Operating on 100% renewable energy, Verda collaborates with local utilities to repurpose excess heat from its data centers for residential heating, potentially serving up to 15,000 homes, which further advances its sustainability goals.
- Efficient Deployment: Supermicro's pre-tested and validated systems, along with rack-scale integration capabilities, enable Verda to accelerate deployment timelines while reducing operational risks and optimizing system performance, enhancing overall operational efficiency.
- Flexible AI Solutions: Verda's full-stack AI cloud platform, combined with Supermicro's advanced systems, supports large language model training and enterprise AI applications, meeting the market's demand for immediate access to NVIDIA AI infrastructure and promoting widespread adoption of AI technologies.
See More
Taiwan Prosecutors Crack Down on AI Chip Smuggling
- Smuggling Case Uncovered: Taiwanese prosecutors suspect three individuals successfully smuggled at least one shipment of Nvidia AI chips to China after first exporting them to Japan, indicating a challenge to U.S. export bans.
- Document Forgery Charges: The trio was detained for allegedly falsifying documents related to the export of Super Micro Computer servers containing Nvidia chips, which are barred from sale to China without a U.S. license, highlighting regulatory loopholes.
- First Public Crackdown: This operation marks Taiwan's first public crackdown on AI chip diversion under U.S. pressure, showcasing Taiwan's significant role in the global tech supply chain and its response to U.S. policies.
- Compliance Call: Nvidia's CEO urged Super Micro to tighten compliance measures in light of Taiwan's crackdown, indicating the challenges companies face in adhering to international trade regulations.
See More
Super Micro Computer Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against Super Micro Computer (NASDAQ: SMCI) and certain executives, alleging violations of federal securities laws from February 2, 2024, to March 19, 2026, seeking damages for affected investors.
- Sales Violation Allegations: The complaint alleges that Super Micro failed to disclose that a significant portion of its server sales were to companies in China, which violated U.S. export control laws, potentially exposing the company to legal risks.
- Internal Control Deficiencies: The lawsuit also highlights material weaknesses in Super Micro's controls to ensure compliance with applicable export control laws, rendering the company's positive statements about its business and prospects misleading and lacking a reasonable basis.
- Investor Action Recommendations: Affected investors are encouraged to apply to be lead plaintiffs by May 26, 2026, to share in any potential recovery, with the law firm operating on a contingency fee basis, thereby reducing the financial burden on investors.
See More
Multiple Companies Face Class Action Lawsuits
- Super Micro Lawsuit: Super Micro Computer, Inc. (NASDAQ:SMCI) faces a class action for the period from April 30, 2024, to March 19, 2026, with investors claiming losses over $50,000 due to undisclosed sales to Chinese companies violating U.S. export laws, misleading shareholders about the company's operations.
- ImmunityBio Allegations: ImmunityBio, Inc. (NASDAQ:IBRX) is implicated in a class action for the period from January 19, 2026, to March 24, 2026, where executives allegedly overstated Anktiva's capabilities, leading to materially misleading statements about the company's prospects and significant investor losses.
- Pinterest Revenue Concerns: Pinterest, Inc. (NYSE:PINS) is involved in a class action for the period from February 7, 2025, to February 12, 2026, with claims that the company failed to disclose risks of declining advertising revenues, potentially facing imminent restructuring, which has severely impacted investors.
- Legal Consultation Recommendation: Investors suffering losses in the aforementioned companies are encouraged to contact The Law Offices of Frank R. Cruz to discuss their legal rights and ensure their interests are protected in the class actions.
See More
Super Micro Computer Reports 123% Sales Growth in Q3
- Strong Sales Performance: Super Micro Computer reported net sales of $10.2 billion for Q3 of Fiscal 2026, reflecting a remarkable 123% year-over-year increase, indicating robust demand in the AI infrastructure market; however, investor sentiment remains cautious regarding future performance.
- Margin Challenges: Despite impressive sales growth, Super Micro's gross margin remains below 10%, meaning a significant portion of revenue is consumed by high costs, which limits profitability and may affect its attractiveness to investors moving forward.
- Trust Issues from Accounting Problems: The company has previously faced accounting issues due to auditor resignations, which raised concerns about its financial controls and transparency; although no major issues have arisen recently, this history may still undermine investor confidence.
- Competitive Market Pressures: Super Micro's growth is heavily reliant on sustained high demand driven by AI; if demand weakens, it could adversely impact performance, necessitating careful risk-reward assessments from investors.
See More
Supermicro Partners with Verda to Advance AI Infrastructure
- Partnership Announcement: Supermicro has partnered with Verda, a leading European AI cloud provider, to deploy NVIDIA GPU-accelerated rack-scale systems, aiming to enhance high-performance AI infrastructure for frontier model developers and enterprises across Europe.
- Technological Edge: The integration of Supermicro's DCBBS design with the latest NVIDIA Blackwell architecture enables Verda to rapidly deploy energy-efficient AI infrastructure, thereby enhancing its competitive position in the global market and addressing urgent customer demands for AI capabilities.
- Sustainability Commitment: Verda operates on 100% renewable energy and collaborates with local utilities to repurpose excess heat from its data centers for heating up to 15,000 homes, further advancing its sustainability goals and demonstrating corporate social responsibility.
- Deployment Efficiency: Supermicro's pre-tested and validated systems, along with its rack-scale integration capabilities, allow Verda to accelerate deployment timelines, reduce operational risks, and optimize system performance, supporting long-term operational efficiency and lowering total cost of ownership.
See More
Verda Deploys Supermicro's Liquid-Cooled Systems for AI Cloud Infrastructure
- Infrastructure Upgrade: Verda has selected Supermicro's NVIDIA Blackwell-accelerated systems to enhance its modern AI cloud infrastructure across Europe, significantly boosting AI computing capabilities for frontier model developers and regulated enterprises, thereby increasing market competitiveness.
- Sustainability Commitment: Operating on 100% renewable energy, Verda collaborates with local utilities to repurpose excess heat from its data centers for residential heating, potentially serving up to 15,000 homes, which further advances its sustainability goals.
- Efficient Deployment: Supermicro's pre-tested and validated systems, along with rack-scale integration capabilities, enable Verda to accelerate deployment timelines while reducing operational risks and optimizing system performance, enhancing overall operational efficiency.
- Flexible AI Solutions: Verda's full-stack AI cloud platform, combined with Supermicro's advanced systems, supports large language model training and enterprise AI applications, meeting the market's demand for immediate access to NVIDIA AI infrastructure and promoting widespread adoption of AI technologies.
See More
Taiwan Prosecutors Crack Down on AI Chip Smuggling
- Smuggling Case Uncovered: Taiwanese prosecutors suspect three individuals successfully smuggled at least one shipment of Nvidia AI chips to China after first exporting them to Japan, indicating a challenge to U.S. export bans.
- Document Forgery Charges: The trio was detained for allegedly falsifying documents related to the export of Super Micro Computer servers containing Nvidia chips, which are barred from sale to China without a U.S. license, highlighting regulatory loopholes.
- First Public Crackdown: This operation marks Taiwan's first public crackdown on AI chip diversion under U.S. pressure, showcasing Taiwan's significant role in the global tech supply chain and its response to U.S. policies.
- Compliance Call: Nvidia's CEO urged Super Micro to tighten compliance measures in light of Taiwan's crackdown, indicating the challenges companies face in adhering to international trade regulations.
See More
Super Micro Computer Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against Super Micro Computer (NASDAQ: SMCI) and certain executives, alleging violations of federal securities laws from February 2, 2024, to March 19, 2026, seeking damages for affected investors.
- Sales Violation Allegations: The complaint alleges that Super Micro failed to disclose that a significant portion of its server sales were to companies in China, which violated U.S. export control laws, potentially exposing the company to legal risks.
- Internal Control Deficiencies: The lawsuit also highlights material weaknesses in Super Micro's controls to ensure compliance with applicable export control laws, rendering the company's positive statements about its business and prospects misleading and lacking a reasonable basis.
- Investor Action Recommendations: Affected investors are encouraged to apply to be lead plaintiffs by May 26, 2026, to share in any potential recovery, with the law firm operating on a contingency fee basis, thereby reducing the financial burden on investors.
See More
Multiple Companies Face Class Action Lawsuits
- Super Micro Lawsuit: Super Micro Computer, Inc. (NASDAQ:SMCI) faces a class action for the period from April 30, 2024, to March 19, 2026, with investors claiming losses over $50,000 due to undisclosed sales to Chinese companies violating U.S. export laws, misleading shareholders about the company's operations.
- ImmunityBio Allegations: ImmunityBio, Inc. (NASDAQ:IBRX) is implicated in a class action for the period from January 19, 2026, to March 24, 2026, where executives allegedly overstated Anktiva's capabilities, leading to materially misleading statements about the company's prospects and significant investor losses.
- Pinterest Revenue Concerns: Pinterest, Inc. (NYSE:PINS) is involved in a class action for the period from February 7, 2025, to February 12, 2026, with claims that the company failed to disclose risks of declining advertising revenues, potentially facing imminent restructuring, which has severely impacted investors.
- Legal Consultation Recommendation: Investors suffering losses in the aforementioned companies are encouraged to contact The Law Offices of Frank R. Cruz to discuss their legal rights and ensure their interests are protected in the class actions.
See More
