10 Stocks To Trade Without Tariffs And Interest Rate Fears

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

Super Micro Computer, Inc. is a manufacturer and developer of storage solutions and high-performance servers. The company serves cloud computing, 5G and edge computing, artificial intelligence, and data center markets.

SMCI stock is up 28% this year but over the past year, it has lost more than half its value. The recent Nasdaq compliance is driving up the price and there is optimism that the firm will mend its ways and implement better financial controls in its business. Bigger investors may still be avoiding the stock but once they see the management’s resolve, they might want to come back in at discounted levels. That’s where the stock will take off.

This disconnect between the investors and analysts is what drives the company’s bullish thesis. On a fundamental level, the company’s customized server solutions are still in high demand. Oracle’s recent earnings showed the demand for cloud services is still as strong as ever.

Now that the company can finally focus on the business, the rising demand from Blackwell GPUs ramp-up is the perfect opportunity for investors, irrespective of where the economy is headed.

SMCI is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held SMCI at the end of the fourth quarter, which was 33 in the previous quarter. While we acknowledge the potential of SMCI as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SMCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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