Super Micro Surges 50% as Demand for AI Servers Fuels Massive Growth
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Super Micro Computer (SMCI) stock has surged 50% in 2024, crushing Nvidia's 20% gains. SMCI trades at a much lower valuation despite its faster growth.
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SMCI provides modular servers used to deploy AI chips. Demand is soaring, with SMCI now expecting Q2 revenue of $3.6B, up 30%, and 68% higher earnings.
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The AI server market is forecast to grow 5x by 2027 to $150B annual revenue. SMCI is expanding capacity to capture this demand.
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Analysts estimate SMCI can hit $30B revenue with its new Malaysia plant. This suggests huge room for growth vs. its $7.1B fiscal 2023 revenue.
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If SMCI hits forecast 2026 EPS of $27.50, its stock could soar 85% more to $800. Investors should buy this still-cheap, fast-growing AI stock.