Super Micro Computer Stock Soars 50% in 2023 on Surging AI Server Demand and Stellar Growth Forecast
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Super Micro Computer (SMCI) stock has surged nearly 50% in 2023, crushing Nvidia's 20% gains. SMCI trades at a much lower valuation despite strong growth.
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SMCI provided stellar updated guidance for fiscal Q2 2024, with revenue estimated to double year-over-year. Adjusted earnings are forecast to jump 68%.
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Strong demand for SMCI's modular servers to deploy AI chips is driving growth. The company is investing to expand manufacturing capacity to 5,000 racks per month.
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The AI server market is projected to grow 5 times from 2023-2027, reaching $150 billion annually. SMCI is positioned to capitalize on this opportunity.
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Analysts say SMCI could reach $30 billion revenue with new facility coming online. Stock could soar 85% in coming years if earnings growth continues.