Prediction: Super Micro Computer Could Be 2025's Best Performing AI Stock

The years-long uptrend in artificial intelligence (AI) stocks may be taking a break, but AI integration isn't slowing down. There's still a ton of work to be done before tech companies and the cloud computing players that support them will have enough AI computing capacity in service to meet the market's needs, and plenty of companies are well positioned to benefit from the infrastructure spending to come.One company that's in a strong position is Super Micro Computer (NASDAQ: SMCI). It's a key provider of the servers that bring together graphics processing units (GPUs) and other AI accelerator devices with other hardware into the functioning machines that provide computing power to clients. However, the stock was beaten down due to some allegations that the company has since debunked, and it hasn't fully recovered. As such, Supermicro (as the company often refers to itself) offers investors a one-two punch of value and growth.When you hear about companies filling data centers with thousands of computing devices, they aren't just haphazardly throwing these devices into a room, connecting them, and calling it a day. They need to be properly connected and cooled; otherwise, they won't run at their full potential and could overheat, causing premature failure. That's why server racks like those from Supermicro are an important piece of the tech puzzle.Continue reading

Apr 3, 2025 - 11:51
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Prediction: Super Micro Computer Could Be 2025's Best Performing AI Stock

The years-long uptrend in artificial intelligence (AI) stocks may be taking a break, but AI integration isn't slowing down. There's still a ton of work to be done before tech companies and the cloud computing players that support them will have enough AI computing capacity in service to meet the market's needs, and plenty of companies are well positioned to benefit from the infrastructure spending to come.

One company that's in a strong position is Super Micro Computer (NASDAQ: SMCI). It's a key provider of the servers that bring together graphics processing units (GPUs) and other AI accelerator devices with other hardware into the functioning machines that provide computing power to clients. However, the stock was beaten down due to some allegations that the company has since debunked, and it hasn't fully recovered. As such, Supermicro (as the company often refers to itself) offers investors a one-two punch of value and growth.

When you hear about companies filling data centers with thousands of computing devices, they aren't just haphazardly throwing these devices into a room, connecting them, and calling it a day. They need to be properly connected and cooled; otherwise, they won't run at their full potential and could overheat, causing premature failure. That's why server racks like those from Supermicro are an important piece of the tech puzzle.

Continue reading