2024-05-24 11:30:00 ET
Summary
- Super Micro is leading the way as it benefits from Nvidia's leadership in AI chips.
- Super Micro looks ready to capitalize on the next AI growth wave in enterprise and sovereign AI adoption.
- The company is focusing on gaining market share quickly, potentially hurting near-term profitability.
- Super Micro must establish its leadership by bringing its cutting-edge AI rack solutions ahead of its peers.
- SMCI is still valued cheaply, given its growth potential. Consider buying before it potentially reaches its all-time high.
Super Micro Ready To Ride On Nvidia's Hype
In my previous bullish SMCI article in March 2024, I upgraded my thesis on Super Micro Computer, Inc. ( SMCI ) stock. While not bearish, I explained why my previous cautious ratings (Hold) didn't seem justified, as the AI hype has demonstrated its sustainability for SMCI. As one of the leading companies focusing on AI rack server solutions, Super Micro is in a prime position to leverage Nvidia's ( NVDA ) leadership as the AI chips designer....
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For further details see:
Super Micro Computer: There's Still Gas Left In The Tank