2024-05-28 06:15:00 ET
When many people think of artificial intelligence (AI) giants, they think of the chipmakers powering AI models. And these companies -- such as Nvidia -- have seen their earnings and shares take off. But a behind-the-scenes player also has been generating enormous growth, thanks to the AI boom. I'm talking about Super Micro Computer (NASDAQ: SMCI) , a maker of servers, storage systems, full rack scale solutions, and other key elements needed in data centers.
The company has been around for more than 30 years, but earnings just started to take off a few years ago as customers began launching AI programs -- and realizing the benefits of investing in Supermicro's products. The company recently reported its first $3 billion quarter, making more in revenue in three months than it did in a full year as recently as 2021.
As a result of soaring demand and earnings, the stock price has followed, climbing more than 2,300% in three years. What may be next from this established player that's found a whole new source of growth thanks to AI demand? My prediction is that Supermicro may take inspiration from Nvidia, and this will be the company's next big move.
For further details see:
Prediction: This Will Be Super Micro Computer's Next Big Move