JHVEPhoto If you believe that Artificial Intelligence ("AI") is more than just a fad, Super Micro Computer (SMCI) may be a solid investment choice for your portfolio. Cloud companies and enterprises have displayed a heavy demand over the last year and a half for accelerated compute platforms necessary for training and running advanced generative AI algorithms. Once OpenAI introduced ChatGPT to the world in November 2022, Super Micro Computer, also called Supermicro, became a go-to provider for companies tha ...

Super Micro Computer (SMCI) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives invest ...

This stock has outperformed Nvidia so far this year. But my prediction is that another company will benefit even more than Nvidia from the AI boom over the long run. This particular company not only wins when it launches a new product, but it also scores a victory when Nvidia and any of the world's top chip designers release something new. A 30-year-old business The popularity of Supermicro's products and liquid-cooling features have helped revenue to soar. The company recently posted its first $3 billion q ...

SMCI stock forecast and price analysis SMCI stock price year-to-date (YTD) It is also important to note that Wall Street market experts are generally bullish on the future price of SMCI shares in the next 12 months, with an average SMCI stock price target standing at $1,051.11, which represents an increase of 26.51% from its current price, with a 'moderate buy' score. All things considered, the positive SMCI news in the form of its addition to this important index might exercise strong upward pressure on it ...

Earnings expectations for AI stocks are falling BofA GLOBAL RESEARCH Shares fell big after the report, however. The 14% decline on May 1, 2024, was the worst post-earnings day performance since August 2023. Looking ahead, the options market prices in a high 10.4% earnings-related stock price swing when assessing the at-the-money straddle pricing, according to data from Option Research & Technology Services. The survey shows operating EPS of $8.22 in the quarter that just finished up - that would be a 134% Y ...

A relatively unknown artificial intelligence enabled server seller not long ago, Super Micro Computer (NASDAQ:SMCI) is now a darling of the financial market. Some folks like to jump on the bandwagon and buy "superstar stocks." That's fine until the music stops and Super Micro Computer stock investors are left holding the proverbial bag. Don't get the wrong idea. Super Micro Computer's market capitalization could keep growing in this year's second half. However, it's a question of risk-versus-reward at this ...

While Nvidia's (NASDAQ: NVDA) performance has been impressive to start the year, it hasn't outperformed one stock in the S&P 500, Super Micro Computer (SMCI -1.35%). So far in 2024, Supermicro is up around 217%, while Nvidia trails it with a 172% rise. Regardless, you're incredibly happy if you've owned either of these stocks. But could Supermicro continue its outperformance to cap off an incredible rise in 2024? Super Micro Computer is another beneficiary of the artificial intelligence arms race But will t ...

Investors should also take note of any recent adjustments to analyst estimates for Super Micro Computer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential. The server technology company's shares have seen an increase of 7.75% over the last month, surpassing the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78 ...

Shares of Super Micro Computer (NASDAQ:SMCI) stock opened in the green after Nasdaq announced that it had selected the company to join the Nasdaq-100 Index and the Nasdaq-100 Equal Weighted Index. Super Micro will replace Walgreens Boots Alliance (NASDAQ:WBA), which is down by over 50% year-to-date (YTD). The replacement will take place before the market opens on Monday, July 22. "This milestone is a testament to our relentless dedication, innovative spirit, and unwavering commitment to exceeding customer e ...

Group 1: Market Dynamics and Company Overview - Enthusiasm around artificial intelligence (AI) has significantly influenced market performance, with investors seeking less obvious AI opportunities beyond major tech stocks like Nvidia and Microsoft [1] - Supermicro specializes in IT infrastructure, designing architecture solutions such as storage clusters for high-performance GPUs, but is not a semiconductor company [3][19] - The company has seen its shares rise over 200% this year, reflecting heightened interest in AI-related stocks [10][18] Group 2: Financial Performance and Challenges - Supermicro's gross margin is currently plateauing, which may pose long-term challenges for the company [5][6] - Despite rising revenue due to increased demand for chips, Supermicro's capital expenditures (capex) have also surged, indicating rising operational costs [14][20] - The semiconductor industry is cyclical, and while current demand is strong, normalization of supply and demand trends is expected [15] Group 3: Valuation and Competitive Landscape - Supermicro's price-to-earnings (P/E) ratio is significantly higher than that of larger, more diversified competitors like IBM and Dell, suggesting potential overvaluation [17][23] - The company is viewed as a trade rather than a long-term investment opportunity, with better options available in the chip and AI sectors [24]