2. Super Micro Computer, Inc. (NASDAQ:SMCI)
Navellier & Associates’ Stake Value: $42,017,248
Number of Hedge Fund Holders: 35
Securing the 2nd spot in Navellier & Associates’ top 10 stock picks is Super Micro Computer, Inc. (NASDAQ:SMCI). Super Micro Computer, Inc. (NASDAQ:SMCI) specializes in high-performance computing solutions, which are increasingly in demand due to the growth of data centers, cloud computing, and AI. Super Micro Computer, Inc. (NASDAQ:SMCI) is recognized for its innovative products, including servers and storage systems. Recently, Super Micro Computer, Inc. (NASDAQ:SMCI) reported a 46% increase in revenue and a 65% rise in EPS over the past year. This strong revenue growth is largely driven by the rising need for AI and data center solutions.
Analyst Mike Zaccardi has a hold rating on Super Micro Computer, Inc. (NASDAQ:SMCI). After a strong start to 2024, Super Micro Computer, Inc. (NASDAQ:SMCI) has stabilized and is now near a fair price. Given the potential for seasonal downturns and a neutral chart, he expects the stock to remain at its current levels for the next few months. Super Micro Computer, Inc. (NASDAQ:SMCI) is expected to report an earnings per share (EPS) of $3.87 for fiscal year 2024, up significantly from $2.46 the previous year. By the end of the first quarter of 2024, Navellier & Associates held 41,600 shares of Super Micro Computer, Inc. (NASDAQ:SMCI), valued at $42,017,248. This investment made up 5.17% of their total portfolio, according to regulatory filings.
The Brown Capital Management Small Company Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its first quarter 2024 investor letter:
“We are benchmark-agnostic, so we spend our time researching current or potential EGCs, not analyzing indexes. However, this quarter there was inescapable attention on one AI-related company, Super Micro Computer, Inc. (NASDAQ:SMCI), which makes servers that hold NVIDIA Corporation (NASDAQ:NVDA) graphics processing units. Pundits wondered if Super Micro was the next AI “meme stock” set to soar like Nvidia. Super Micro’s stock price was up 255% in the first quarter and indeed is up a jaw-dropping 848% in the last year. Importantly, Super Micro is in the Russell 2000® Growth index, and alone accounted for over a third, or 2.82%, of the index’s 7.58% total return this quarter. However, Super Micro is not a company we could have ever owned. The company generated more than $7 billion in revenue in its last fiscal year, far above our current maximum revenue threshold. In fact, when the company came public in March 2007, it was already too large for our portfolio. Now, the company is so large that it moved into the S&P 500 index at the end of the first quarter. Nevertheless, not owning Super Micro was the largest detractor to our performance versus the index this quarter, comprising more than one-third of our underperformance. This, to us, is a reminder why an index is not always an accurate gauge of our short-term performance.”
