10 Best WallStreetBets Stocks To Buy Right Now

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

Number of Hedge Funds: 47

Super Micro Computer Inc. (NASDAQ:SMCI) is an IT company that provides high-performance computing and storage solutions. It designs and manufactures a range of server systems, workstations, and storage products, catering to various industries including cloud computing, data centers, and enterprise applications. Its products are designed to meet the demanding requirements of modern computing environments, offering high performance, reliability, and scalability.

The company experienced substantial growth in FQ4 2024, with revenue surging 142.95% year-over-year. Annual revenue for fiscal year 2024 increased by 110%. While earnings per share of $6.25 missed market expectations by $1.89, the company has accelerated production, now manufacturing 5,000 racks and over 2,000 direct liquid cooling racks monthly.

In June, it expanded its manufacturing capacity with the addition of 3 new facilities in Silicon Valley and other regions. It also recently launched a new line of servers powered by Intel’s Xeon processors. These servers feature advanced architectures, including 10U and multi-node form factors, to support next-generation GPUs and higher CPU core densities.

On September 30, the company underwent a 10-for-1 stock split. This move aims to make its shares more accessible to investors. While the split itself doesn’t change the company’s fundamentals, it could potentially attract more retail investors.

It has rapidly expanded its market presence through strategic growth in Asia and a focus on developing high-value AI solutions. Innovative products, like liquid cooling clusters and cutting-edge X14 and H14 systems, have been instrumental in driving AI adoption. The company remains a compelling investment opportunity with a solid financial foundation, innovative product offerings, and significant growth potential in the AI server market.

Carillon Scout Mid Cap Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its Q2 2024 investor letter:

“Super Micro Computer, Inc. (NASDAQ:SMCI) was the top detractor to returns in the second quarter. Super Micro designs and manufacturers server solutions based on modular and open-standard architecture. This modular approach combined with a strong engineering culture helps the company to supply the market with advanced servers and rack-scale compute solutions quickly. After an impressive return in the first quarter, the company offered disappointing near-term earnings guidance, though we do not believe its long-term opportunity has diminished. We expect continued strong growth for several years, although the range of outcomes is quite wide; it is difficult to forecast AI server market growth with precision.”