Posted 3/6/2024, 12:15:00 PM
Super Micro Joins S&P 500 After Massive Stock Surge Fueled by AI Server Demand
- Super Micro Computer (SMCI) is joining the S&P 500 index on March 18th after huge stock gains this year fueled by AI demand
- SMCI shares up 297% year-to-date and 1,000% in 2023 as its servers excel at AI workloads
- Recent earnings show SMCI revenue doubled and income up 68% as demand outpaces supply
- CEO expects "AI boom" to last many years or decades as it is an "AI revolution"
- At trailing P/E of 70, SMCI stock looks reasonably priced given estimated 2025 P/E of 30 and growth potential