17 Trending AI Stocks According to Latest News And Analyst Ratings

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

Number of Hedge Fund Holders: 35 

Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. The firm has ignited interest from tech giants after revealing new liquid cooling technology in AI data center build that helps the centers operate more efficiently. According to the management, the firm expects the new tech to be in 30% of data center racks it markets over the course of the next few months. This efficiency is important because the computational needs for AI tasks are likely to have a direct impact on the environment as well as power consumption. Presently, liquid cooling is used in only 1% of the racks in the data center market.

Citi analyst Asiya Merchant believes AI server demand strength will continue for companies like Super Micro Computer, Inc. (NASDAQ:SMCI) in the coming months. After the latest earnings report of the company, the analyst noted that strong demand saw revenues come in range of outlook, just slightly below consensus, in light of $800 million of revenues that shifted into July due to component shortages related to Direct-Liquid-Cooling. Guidance also indicated robust demand will continue as high backlog underpins outlook.