Posted 1/17/2024, 10:15:00 AM
Super Micro Surges on Booming AI Server Demand, Trades at Bargain Valuation Despite Growth
- Super Micro Computer (SMCI) stock has surged 20% in 2024 due to bullishness around AI and demand for AI chips
- SMCI provides modular servers optimized for AI, capturing growing market valued at $150B by 2027
- SMCI quick to release products for new AI chips like Nvidia's H200 and GH200
- Revenue expected to hit $10B-$11B in 2024, nearly 50% jump over 2023 amid production capacity boost
- Stock trades at just 2.6x sales and PEG ratio of 0.94 despite impressive growth, presenting opportunity