10 Best-Performing S&P 500 Stocks in the Last 3 Years

1. Super Micro Computer, Inc. (NASDAQ:SMCI)

3Y CAGR: 136.26%

Super Micro Computer, Inc. (NASDAQ:SMCI) is a tech company out of San Jose. The company provides parts as well as comprehensive solutions for servers that can be tailored to any size and workload type. What has given supermicro perform so well though, is its liquid-cooled technology.

The traditional solution to server cooling is an air-conditioned room. Supermicro’s liquid-cooling technology eliminates the need for air-conditioned rooms. According to the company itself, its liquid-cooled technology saves up to 40% in energy costs and 80% in space.

Supermicro has had annualized 3-year returns of 136% and has gained 65.5% year-to-date. However, the stock declined 20% on August 7, a day after the company reported its fiscal Q4 earnings that fell short of analysts’ estimates, especially on margins that came out weak.

Bank of America analysts downgraded Super Micro Computer, Inc. (NASDAQ:SMCI) from ‘Buy’ to ‘Neutral’ on August 6, expecting several next quarters for the company to be weak on margins basis, despite expected revenue growth. You can also read a bear case theory on SMCI we picked up from Chit Chat Stocks’ substack that delves into alleged accounting malpractices on the part of the company here.

While we acknowledge the potential of the best-performing S&P500 stocks in the Last 3 Years, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.