The highest-returning stock in the S&P in the first half rose 188%. It wasn't Nvidia.
Super Micro (NASDAQ: SMCI ), a provider of unique server and cooling solutions for high-powered computing, has been on a tear as a direct result of the AI narrative. Even Tesla (NASDAQ: TSLA ) CEO Elon Musk has joined the fray, launching his xAI as a competitor to OpenAI and others in the large language model space.
Down 33% from its 52-week high, Super Micro Computer (NASDAQ: SMCI ) stock is a screaming buy at current levels. Despite the pullback and volatility seen in SMCI stock during the just completed second quarter, the company's share price is up 188% year to date, making it the best performing stock in the benchmark S&P 500 index.
Super Micro shares have been in a league of their own in 2024, gaining nearly 190% and aided by robust quarterly results.
Gains among tech giants Super Micro Computer (SMCI), NVIDIA (NVDA) and Micron Technology (MU) helped the S&P 500 to post double-digit gains in the first half.
Demand for Supermicro's servers and other equipment has soared amid the artificial intelligence boom. The company recently reported its first $3 billion quarter.
A partnership with Nvidia changed the game for Supermicro stock. The stock has risen 3,400% since the beginning of the decade.
Supermicro is benefitting from the same trends as Nvidia. The stock was valued for perfection in mid-March.
One AI stock has outperformed Nvidia this year. One Wall Street analyst sees the good times continuing, with a price target 70% above current levels.
The tech stock ended June trading with a 2024 gain of 188%, while the pharmacy chain has fallen 54%.
Super Micro Computer (NASDAQ: SMCI ) stock still has multiple, strong, positive catalysts. Among them are the rapid growth of artificial intelligence, the firm's ongoing, critical competitive advantages and its market share gains.
Super Micro Computer (NASDAQ: SMCI ) stock is having a moment. Over half the company's revenue comes from AI GPU platforms.