11 Best Computer Hardware Stocks to Invest in Right Now

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

Number of Hedge Fund Holders: 33

Super Micro Computer, Inc. (NASDAQ:SMCI) is a computer hardware company that specializes in manufacturing high-performance storage systems including MP servers, GPUs and co-processors, motherboards, and more. One of their key products is direct liquid cooling (DLC) for servers, essential for cooling GPUs in data centers and high-performance environments.

The company has capitalized on the AI revolution through its storage solutions as during the past 3 years its top and bottom line have grown by more than 61% and 121%, respectively. However, Super Micro Computer, Inc. (NASDAQ:SMCI) dropped lately due to the delay in filing the 10-K form for the latest fiscal year ending June 30, 2024, and accusations of wrongful accounting. To cater this, management has appointed an independent auditor, who is working on following the compliance plan to ensure the company remains listed on the NASDAQ stock exchange. Moreover, on December 2 the company reported that an independent special committee found no wrongdoing in the company’s accounting.

Despite the technical troubles, the business of Super Micro Computer, Inc. (NASDAQ:SMCI) looks robust. As per its update on first quarter results for fiscal 2025, the company expects net sales to be between $5.9 billion to $6 billion, with the midpoint of the expected range indicating an impressive 181% increase year-over-year. It is one of the best computer hardware stocks to invest in right now.

Columbia Acorn Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its Q3 2024 investor letter:

“Super Micro Computer, Inc. (NASDAQ:SMCI) had a tough quarter due to a confluence of negative events. It declined, but is still up significantly for the year. While demand for the company’s AI server racks remains strong, with revenue up over 100%, gross margins have fallen sharply for two straight quarters, implying a price war. In addition, Super Micro was the subject of a short-seller report and a delay in filing its annual report with the SEC. We have been taking profits in the stock all year and have only a small position, which we are maintaining given the strong performance and demand for Super Micro’s AI racks and a depressed stock valuation.”

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