Last year, it skyrocketed by 250%, and this year it has doubled again. What makes "AI's most enchanting stock" Super Micro Computer so special?
For Supermicro, it doesn't matter who wins the AI competition. Because if you purchase AI chips, whether from NVIDIA or other companies, you still need to integrate and cool the chips - and that's where Supermicro comes in.
Super Micro Computer: Growing Faster, Bouncing Back Stronger, and with a Lower Stock Price than NVIDIA?
After soaring 250% last year, Super Micro Computer's stock price has continued to rise this year, more than doubling and easily outperforming NVIDIA, Microsoft, AMD, and others.
Here's another astonishing fact: since the end of 2022, Super Micro Computer's stock price has accumulated a growth of over 700%, and its market value has increased by more than 8 times.
The main reason behind the surge in Super Micro Computer's stock price is the strong market demand for its servers (the infrastructure for AI chips). In addition, the recently released impressive earnings report far exceeded expectations, with second and third quarter performance guidance surpassing analyst expectations, driving Super Micro Computer's stock to rise more than 10% after hours.
J. Dennis Jean-Jacques, the founder and chief investment officer of Ocean Park Investments, said:
"For Super Micro Computer, it doesn't matter who wins the AI race. Because if you buy AI chips, whether from NVIDIA or other companies, you still need to connect and cool the chips—this is where Super Micro Computer comes in."
Hans Mosesmann of Rosenblatt Securities believes that Super Micro Computer's liquid-cooled server systems are "essential for the next generation of AI computing hardware solutions." He said that the company is like "Switzerland for AI," benefiting from the overall growth of AI rather than specific customer growth.
Currently, Super Micro Computer has a market value of approximately $37 billion, which is far below NVIDIA's market value of around $1.7 trillion but still surpasses more than half of the S&P 500 constituents.
According to reports, Super Micro Computer's revenue is expected to grow by nearly 40% in the 2023 fiscal year, surpassing Nvidia's growth rate. Based on data compiled by Bloomberg, general expectations for Super Micro Computer's net profit in 2024 have surged by 66% in the past six months. In just the past week, revenue forecasts have increased by over 20%, and overall revenue is expected to more than double this year.