10 Best Performing S&P 500 Stocks So Far in 2025

2. Super Micro Computer Inc. (NASDAQ:SMCI)

Number of Hedge Fund Holders: 33

Year-to-Date Performance as of February 17: 57.19%

Super Micro Computer Inc. (NASDAQ:SMCI) develops and manufactures high-performance server and storage solutions globally. Its offerings range from complete systems and modular blade servers to subsystems, software, and accessories. It serves enterprise data centers, cloud computing, AI, 5G, and edge computing markets. It provides integration, configuration, software upgrades, technical documentation, training, and support services.

Its servers integrate NVIDIA GPUs, which are crucial for AI and data centers. The company recently projected massive revenue growth, forecasting $40 billion in sales by FY26. This outlook is fueled by the demand for AI-optimized servers, particularly those incorporating NVIDIA’s advanced chips, and Super Micro Computer Inc.’s (NASDAQ:SMCI) direct-liquid cooling (DLC) technology, which is expected to be adopted by a significant portion of new data centers.

While the company did lower its FY25 revenue guidance to between $23.5 billion and $25 billion, from a previous range of $26 billion to $30 billion, this was overshadowed by the long-term projection and positive developments regarding its financial reporting. Its stock recently surged following news of Meta Platforms’ investment in robotics. This could further increase demand for Super Micro Computer Inc.’s (NASDAQ:SMCI) servers. Analysts have raised their price targets on the stock, reflecting the company’s potential in the expanding AI infrastructure market. For instance, Wedbush analysts raised the stock price target on this company to $40 from $24 and reaffirmed a neutral rating.

Carillon Eagle Small Cap Growth Fund stated the following regarding Super Micro Computer Inc. (NASDAQ:SMCI) in its first quarter 2024 investor letter:

“Super Micro Computer, Inc. (NASDAQ:SMCI) provides accelerated computing platforms that are application-optimized, high performance, and high-efficiency server and storage systems for end markets such as cloud computing and artificial intelligence (AI). The company delivered impressive financial results and provided strong guidance that reflected the increasing demand for the infrastructure that supports artificial intelligence. After the report, the stock notably traded higher as investors grew more enthusiastic about the growth prospects aligned with the critical role the company plays in the development of data centers.”