Super Micro Computer (SMCI) released preliminary fourth-quarter results on July 21, showing revenue at the low end of its $11 billion to $12.5 billion guidance. The company reported a gross margin of 15% to 17%, which is higher than its previous forecast of around 8%, and a record backlog with new orders exceeding $60 billion in Q4.

However, an analysis published on Yahoo Finance suggests that despite these encouraging preliminary numbers, the stock is unlikely to return to its previous highs of over $50. The analysis points out that while the gross margin improved, revenue is tracking slightly below expectations, potentially limiting the overall impact on the bottom line. It also highlights past governance concerns, suggesting the stock deserves to trade at a discount.