Despite the massive growth that the company has seen recently, many analysts consider the contraction in multiples and price from the March 2024 high to be a buying opportunity. I do not disagree that buying at the present price could lead to significant alpha if my outlined growth catalysts come to fruition, which I mentioned above and am bullish about. If we are to take Wall Street's word for it and then be slightly more optimistic based on my macro outlook, a reasonable revenue CAGR could be 27.5% over t ...

The hardware firm specializes in various products and equipment for data centers, which have seen in an explosion of growth over the past decade. If you have been reading about the deployment of AI algorithms, data centers are a critical component of that. With that said, below are three reasons SMCI stock remains a great stock play on AI. Generative artificial intelligence careened into the social zeitgeist in late 2022 with the public release of OpenAI's ChatGPT. The power and depth of this generative AI ...

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation Super Micro is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair va ...

Thanks @elonmusk for leading the liquid cooling technology to large AI data centers! This may lead to preserving 20 billion trees for our planet❤️ pic.twitter.com/oJ48Dw3YVF That's a nice tweet, and certainly indicative that Super Micro's customer base is fast growing. SMCI Stock Higher on Musk Partnership In late June, news broke that Musk's xAI would be partnering with Super Micro to provide hardware that the AI company needs for its supercomputer. The tweet from Liang furthers that catalyst. On the date ...

Despite the pullback and volatility seen in SMCI stock during the just completed second quarter, the company's share price is up 188% year to date, making it the best performing stock in the benchmark S&P 500 index. Super Micro Computer makes data centers that power artificial intelligence models and applications. To say that the company's products are in high demand is an understatement. The maker of high-efficiency servers reported first-quarter EPS of $6.65 compared to $5.78 that was expected among analy ...

Sustaining such gains is an ambitious but not impossible goal. However, a key partnership with Nvidia has changed the game for Supermicro (as the company is commonly called). Consequently, its stock is up 190% in the first half of this year. With its massive gains, investors are right to ask whether that momentum can continue through the second half of 2024. Supermicro is a technology hardware company known for producing energy-saving, environmentally friendly tech products for the cloud, metaverse, and oth ...

While most investors are gravitating toward chip leader Nvidia (NVDA -0.36%) at the moment, AI is and will continue to mint other market winners as well. In fact, one S&P 500 AI company has outperformed even Nvidia this year. And despite this stock's impressive 2024 run, one Wall Street analyst predicts another 70% surge. Supermicro has undoubtedly benefited handily from a close partnership with Nvidia as a preferred server partner. However, the company has also been gaining market share thanks to its in-ho ...

Super Micro Computer (NASDAQ:SMCI) stock still has multiple, strong, positive catalysts. Among them are the rapid growth of artificial intelligence, the firm's ongoing, critical competitive advantages and its market share gains. Also importantly, the valuation of Super Micro Computer stock remains very attractive while worries about its profit margins are overdone. Given these points, I continue to recommend investors buy Super Micro Computer stock. AI Continues to Grow Rapidly Super Micro sells servers, ra ...

xAI Collaboration Benefits Super Micro Established in 2023, xAI sought to challenge AI leaders like Microsoft-backed OpenAI and Alphabet's Google. Musk, a co-founder of OpenAI, now directs his expertise and resources toward advancing xAI in the AI sector. Partnering with Dell Technologies and Super Micro Computer ensures xAI's access to crucial hardware for its AI advancements. That said, the company is capable of targeting a bigger share in the AI server market. If the company is able to grow its market sh ...

Pullback, shmullback. Sure, Nvidia's (NVDA 6.76%) share price has retreated somewhat in recent days. But that doesn't negate the fact that the chip stock has soared 154.9% year to date. Nvidia remains a huge winner for investors. There are at least a couple of reasons behind this big winner's super performance this year. Super Micro Computer's (SMCI 1.95%) shares have skyrocketed 196.6% so far in 2024. Its gain was even more impressive earlier this year. Super Micro stock was up a jaw-dropping 318% year to ...