AI promises new and better medicines more quickly, for example, and more efficiency across businesses and in our daily lives. Conversational assistants that have been released in recent times could be just the beginning. And analysts predict the AI market may surpass $1 trillion by the end of the decade, suggesting we're really in the early days of this growth story right now. I'm talking about Super Micro Computer (SMCI 12.44%), the developer of workstations, servers, full rack scale solutions, and other e ...

The company assembles computer servers for sale, many of which are used to power artificial intelligence (AI) applications. The explosion in demand for these servers helped it become one of the more notable companies (and stocks) in this space. Investors who bought in early have seen massive returns. A $1,000 investment in Supermicro five years ago would be worth an eye-popping $42,460 today. That's an average annual return of 112%! Despite its stellar stock price gains, the price-to-earnings ratio (P/E) is ...

Core Insights - Supermicro has seen a stock rally of over 2,000% in the past three years, while C3.ai's stock has declined more than 50% during the same period [1] - C3.ai's revenue growth has significantly slowed, with a 38% increase in fiscal 2022 followed by only a 6% rise in fiscal 2023, attributed to competition and macroeconomic challenges [2] - Supermicro's revenue and earnings rose 37% and 115% respectively in fiscal 2023, driven by high demand for AI servers [5] Company Performance - C3.ai's revenue growth accelerated to 16% in fiscal 2024 after a challenging fiscal 2023, but it still faces customer concentration issues and high valuation concerns [2][3] - Supermicro is expected to see revenue and earnings soar by 110% and 102% respectively in fiscal 2024 as the AI market expands [5] - C3.ai generates over 30% of its revenue from a joint venture with Baker Hughes, which is set to expire in April 2025, necessitating a renewal for continued growth [9] Market Position - Supermicro holds a smaller share of the server market compared to Dell Technologies and Hewlett Packard Enterprise but specializes in high-performance liquid-cooled servers [4] - Supermicro's share of the dedicated AI server market is projected to increase from 10% to 17% within the next three years as the overall market expands by 150% [12] - C3.ai's stock is considered expensive at nearly 10 times this year's sales, and it remains unprofitable by both GAAP and non-GAAP measures [10] Competitive Landscape - Supermicro benefits from a partnership with Nvidia, gaining access to top-tier data center GPUs, which enhances its competitive edge [11] - C3.ai's shift to consumption-based plans has resulted in less consistent revenue compared to its previous subscription model [2] - Supermicro's stock is viewed as cheaper relative to its growth potential, trading at 22 times forward earnings and 2 times this year's sales [13]

These artificial intelligence stocks could soar even higher in the years ahead. Here's why Supermicro and Intuit are worthwhile investments whether or not the companies conduct stock splits this year. Super Micro Computer builds high-performance servers and storage systems for enterprise and cloud data centers. Its products range from individual devices to full rack-scale solutions. The company sources chips, memory, interconnects, and other hardware from suppliers like Intel and AMD, and it has a particula ...

Super Micro Computer (SMCI -3.06%) had a remarkable year, as the stock nearly tripled. However, it's down around 35% from its highs, which some investors may see as a buying opportunity. Super Micro Computer (often called Supermicro) is a key supplier in the data center industry and is thriving thanks to increased demand for artificial intelligence (AI). This association caused the stock to increase quickly, but also contributed to its volatility. Supermicro's business is booming because it specializes in h ...

Without Nvidia's (NASDAQ:NVDA) breathtaking success story, you probably wouldn't be thinking about Super Micro Computer (NASDAQ:SMCI) much in 2024. You might have purchased Super Micro Computer stock back in March, when the hype was at its peak. It's wise to sell now, before the shares decline further in the upcoming months. Furthermore, Super Micro Computer set high expectations for itself, and now the company has to live up to those expectations. Otherwise, Super Micro Computer shares could lose a lot of ...

Financial Data and Key Metrics Changes - For the nine months ended March 31, fiscal year 2024, the company's revenues reached $9.6 billion, representing a 95% increase compared to the prior year [13] - Non-GAAP EPS for the same period was $15.77, reflecting a 90% increase year-over-year [13] - Operating expenses as a percentage of revenues decreased from 7% in fiscal year 2023 to 4.5% in the first nine months of fiscal year 2024, indicating improved operational leverage [29] Business Line Data and Key Metrics Changes - The company primarily serves two segments: enterprise and channel, with enterprise representing 50% of the business [17] - The company has seen significant growth in AI-related revenues, with over 50% of total revenues now tied to AI solutions [24][26] Market Data and Key Metrics Changes - The company is experiencing strong demand from Tier 2 Cloud Service Providers (CSPs) for AI as a service, which is expected to continue [9] - The hyperscaler segment is also a target for the company, although it does not aim to compete in the low-cost reference design market [11] Company Strategy and Development Direction - The company aims to maintain its competitive edge by focusing on engineering excellence and customized server solutions [25] - Plans to ramp up manufacturing capabilities in Malaysia to support future growth and reduce inefficiencies in the supply chain [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledges supply constraints as a limiting factor for growth, indicating that increased supply could lead to even higher revenues [13] - The company is optimistic about the future of AI and its role in driving growth, with a focus on delivering high-performance and energy-efficient products [32][33] Other Important Information - The company is committed to maintaining gross margins in the 14% to 17% range despite competitive pressures [30][32] - Liquid cooling technology is being adopted at scale, which is expected to enhance efficiency in data centers [22] Q&A Session Summary Question: How do you see the market for AI servers evolving? - Management believes AI represents the delivery of the promise of big data, with significant use cases emerging [3][4] Question: Can demand from Tier 2 CSPs be sustained? - Management is confident in the ongoing demand from CSPs focused on AI as a service [9] Question: What is the company's strategy for gaining market share? - The company plans to continue delivering the best AI solutions and has seen significant revenue growth, indicating market share gains [13][24] Question: How does the company view competition from Dell and others? - Management believes their growth rate outpaces the industry, and supply constraints have limited their ability to capture more market share [12][13] Question: What is the company's approach to managing margins? - Management aims to maintain gross margins through efficient manufacturing and product design, despite competitive pressures [30][32] Question: How does the company plan to address working capital needs? - The company has raised capital to support growth and is focused on balancing dilution with the need for permanent capital [49][50]

Generative AI SuperClusters, Integrated with NVIDIA AI Enterprise and NIM Microservices, Offer Instant ROI Gains and More AI Work per Dollar Through a Massively Scalable Compute Unit, Simplifying AI for Rapid Deployment SAN JOSE, Calif. and TAIPEI, Taiwan, June 4, 2024 /PRNewswire/ -- Supermicro, Inc. (NASDAQ: SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, is introducing a ready-to-deploy liquid- cooled AI data center, designed for cloud-native solutions that accelerate generative ...

Super Micro Computer, Inc. (NASDAQ:SMCI) BofA Securities 2024 Global Technology Conference Call June 4, 2024 11:40 AM ET Company Participants David Weigand - Senior Vice President and Chief Financial Officer Conference Call Participants Ruplu Bhattachary - Bank of America Ruplu Bhattachary Thanks everyone for attending day one of our Global Technology Conference. My name is Ruplu Bhattachary. I'm a director with the equity research team covering IT hardware and electronics manufacturing services companies. ...

Despite some recent volatility, the long-term growth story at Super Micro Computer (NASDAQ:SMCI) remains intact. Twelve months ago, Super Micro Computer stock was $230 a share. Since then, the stock has risen 241% and grown from a small-cap security to being added to the S&P 500, and leading that benchmark index in terms of performance. Big Growth Super Micro Computer stock really took off after the company signed a deal to supply Nvidia (NASDAQ:NVDA) with servers that can be used in tandem with its microch ...