Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our lives looking for wonderful businesses run by able and honest people, and we have learned to walk away quickly when either half of that sentence fails. Super Micro fails both halves, and it fails them in a way the market's excitement about artificial intelligence has papered over. This is a low-margin assembly and integration business earning roughly ten cents of gross profit per dollar of sales, wholly dependent on a supplier (NVIDIA) that controls its fate, competing against ODMs who will do the same work for less, and run by a management team whose relationship with auditors, regulators, and the Department of Justice has now gone wrong three separate times in eight years. The stock looks cheap at 11 times trailing earnings. It is not cheap.
Recent filings analysed: 10-K (2026-08-31), 8-K (2026-08-11), 8-K (2026-08-05), 8-K (2026-07-21).
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