With the S&P 500 near its all-time highs, many value-seeking investors may feel that finding a bargain is nearly impossible. However, if you dig deeper, several undervalued stocks still trade at substantial discounts, despite their long-term growth potential. Among these hidden gems are Super Micro Computer (SMCI) and Lyft (LYFT)—two stocks that could be ripe for the picking for those with $2,000 to invest. Let’s break down why these stocks could present excellent opportunities for savvy investors.
Super Micro Computer: A Undervalued AI Server Powerhouse
Super Micro Computer (NASDAQ: SMCI), a leading provider of AI servers, has seen its stock plummet by nearly 70% from its all-time high of $118.81 in March 2024. The stock’s significant decline followed a series of challenges, including allegations of revenue inflation from a short-seller, the delay of its 10-K filing for fiscal 2024, and the loss of its auditor, Ernst & Young. Adding to the negative pressure, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) subpoenaed the company’s financial documents in late December.
Despite these hurdles, there’s good news for long-term investors. Over the past three months, Super Micro has taken steps to stabilize its situation. The company appointed a new independent auditor, submitted a compliance plan to Nasdaq to prevent a potential delisting, and committed to filing its 10-K report by February 25, 2025. If it successfully meets these deadlines, the company’s stock could experience a significant rebound.
Beyond the regulatory and legal challenges, Super Micro Computer remains a leader in the AI server industry, with tremendous growth potential. The company expects its revenue to rise by 57% to 67% in fiscal 2025, with a projected 65% growth in fiscal 2026 as it receives shipments of Nvidia’s new Blackwell GPUs. Analysts are also predicting an earnings per share (EPS) growth rate of 17% for fiscal 2025, followed by an eye-popping 54% rise in fiscal 2026.
At its current price of approximately $54, Super Micro Computer presents a compelling opportunity for investors who believe in the future of AI and high-performance computing. If the company can resolve its short-term issues and capitalize on its growth potential, its stock may be severely undervalued at current levels.
