Three stocks in the S&P 500 index have shown growth of 100% or more this year. Nvidia is still ahead of one of them. Vista’s return of 132.2% falls short of Nvidia’s level. However, Nvidia significantly lags behind the most effective stocks in the S&P 500. Let’s talk about Super Micro Computer (SMCI).
Super Micro Computer’s Impressive Growth
Super Micro Computer (SMCI) has seen its stock rise by 196.6% in 2024. Earlier this year, the increase was even more impressive. In mid-March, Super Micro’s shares had surged by 318% compared to the same period last year. The IT solutions provider has not just had an excellent year, but a fantastic decade. Ten years ago, Super Micro Computer’s market capitalization was less than $1.2 billion. The company reported revenue of $1.16 billion in the previous fiscal year with a profit of only $21.3 million.
Current Market Capitalization and Future Expectations
Today, Super Micro Computer market capitalization exceeds $49.3 billion. Wall Street expects the company’s revenue for the fiscal year ending June 30 to be around $15 billion. The stock also grew by 246% last year due to increasing demand for servers and data storage systems managed by artificial intelligence (AI).
The AI Boom and Its Impact
Super Micro’s success goes hand in hand with Nvidia’s success. In the last quarter, the company demonstrated record demand for its direct liquid cooling (DLC) systems for AI rack scale systems, including Nvidia H100 GPUs. Super Micro was the first to bring development platforms for Nvidia GH200 (Grace Hopper) and GB200 (Blackwell) to market.
Inclusion in the S&P 500 Index
Another factor that contributed to Super Micro’s rise was its inclusion in the S&P 500 index in March. As a result, all mutual funds and exchange-traded funds (ETFs) tracking the S&P 500 had to buy Super Micro’s shares.
Future Prospects for Super Micro Computer
The AI boom is not expected to slow down anytime soon. Super Micro forward P/E ratio of around 26 is not too high, given the company’s growth prospects over the next few years.
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