SMCI - Super Micro: Reiterating A Buy For Aggressive Growth Investors
2024-07-20 01:11:19 ET
Summary
- Super Micro Computer is a solid investment choice for AI infrastructure investors, with a stock up 197.32% since November 2023.
- Demand for AI infrastructure remains high, with the global market projected to grow at a CAGR of 30.4% to $227 billion by 2030.
- The company's Rack-Scale solutions and modular approach give it a competitive advantage in the AI infrastructure market.
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 that needed hardware to develop AI-based services.
I first recommended Supermicro on November 15, 2023. The stock has been up 197.32% since I wrote my first article, compared to the S&P 500's ( SPX ) rise of 25.79%. The second time I recommended the stock on April 05, 2024, didn't fare nearly as well. The stock is down 9.40% versus the S&P 500 rising 9.85%. The company may be digesting its rapid gains since the beginning of the year. It's one of the few stocks outperforming NVIDIA ( NVDA ) in 2024. ...
Super Micro: Reiterating A Buy For Aggressive Growth Investors