Louis Navellier Believes Super Micro Outperforms Nvidia in AI Boom

In the dynamically expanding realm of artificial intelligence (AI), one name is making waves with its impressive performance that’s even overshadowing industry giants like Nvidia. That noteworthy contender is Super Micro Computer, a company that has made a name for itself in the AI market by specializing in AI systems and graphics processing unit servers. It has not just kept pace with but outstripped the growth of its competitor, with its shares skyrocketing by a staggering 960% last year, compared to Nvidia’s more than 200% increase.

As we continue traversing the path of technological evolution, the surge in Super Micro Computer’s growth trajectory extends into the current fiscal period, where it has already seen a bounce of over 200%, dwarfing Nvidia’s 59%. The remarkable success of Super Micro Computer was highlighted by Louis Navellier, chairman and founder of Navellier & Associates. Navellier, who chose to include the stock in his portfolio more than two years ago, stressed the company’s exceptional performance on CNBC’s “Street Signs Asia”, noting, “Super Micro is hotter than Nvidia. And the reason they’re hotter is they got it higher – they beat their guidance.” He also pointed out the company’s absence from the S&P 500, hinting at its potential inclusion in the future.

For interested investors still pondering entry points, the dialogue around Super Micro Computer suggests that it may not be too late to participate in the company’s success. Navellier advises concentrating on hardware rather than software players when aiming to engage with the AI trend, as the hardware sector is primarily dominated by two major players – Nvidia and Super Micro Computer. He alludes to the idea that investment in these companies is still rational, stating, “The multiples aren’t that bad when you look at a one-year forecast earnings.”

What furthers Super Micro Computer’s appeal is the notion that it’s reasonably priced, especially when considering its robust financial performance. Navellier added, “Super Micro is not that overpriced,” implying an attractive valuation for prospective investors.

This sentiment is echoed by Wall Street analysts who have been observing the company’s potential closely. Bank of America recently acknowledged Super Micro Computer, indicating that its potential might be undervalued. They noted its growing backlog and ongoing capacity expansion, bestowing it with a buy rating and setting a price target at $1,040, signifying an approximate 21% gain from its last close around $860.

An even more optimistic view came from Rosenblatt, which established a $1,300 price target for Super Micro Computer, framing it around a significant 51% upside. This stems from the firm’s acknowledgment of the “robust growth” in AI computing and the company’s “strategic position” in the crucial market. FactSet data reveals that 71% of analysts covering the stock have issued a buy rating, underscoring the confidence in its continued success.

It’s evident that Super Micro Computer has cemented its status as a formidable contender in the AI sector, outperforming and gaining investor confidence at an accelerating pace. Its strategic emphasis on AI systems and GPU servers has paid off handsomely, forecasting a fertile future for AI-oriented hardware companies. With its remarkable stock performance and optimistic analyst expectations, Super Micro Computer stands as a significant player to watch in the latest AI news & AI tools market landscape.

As AI continues to integrate into various sectors, creating new applications like AI images generator, artificial intelligence generated images, AI text generator, and AI video generator technologies, the hardware behind these innovations becomes ever more critical. The success of Super Micro Computer not only exemplifies the vital role of powerful computing hardware in driving AI advancements but also serves as an indication of where smart investments in the AI industry might lie.