8 Cheap Growth Stocks to Buy According to Analysts

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

Forward P/E Ratio: 13.89

Earnings Growth This Year: 53.50%  

Analyst Upside Potential: 36.97% 

Super Micro Computer, Inc. (NASDAQ:SMCI) is a technology company that specializes in providing high-performance computing solutions. It designs servers and storage systems that are used for data centers, cloud computing, 5G networking, and artificial intelligence.

Its cutting-edge products such as liquid cooling clusters and next-gen X14 Intel Xeon 6 and H14 AMD Turin systems have proved to be indispensable in the growing artificial intelligence environment. Over the past couple of years, AI has emerged as a new catalyst for the stock. We say this because the company has grown its revenue by more than 61% and its bottom line by around 121% during the past 3 years.

Super Micro Computer, Inc. (NASDAQ:SMCI) ended fiscal 2024 with a revenue of $14.9 billion almost double the previous year’s $7.1 billion. Management has speeded up its production, it is now producing 5,000 racks and more than 2,000 direct liquid cooling racks per month.

While the most recent year results are robust, what’s more impressive is its anticipation for 2025 to be another historic year, with a record number of orders, and a growing backlog of design wins. Management stays confident that it is in the right momentum to meet the demand for its AI servers.

The stock is trading at only 14 times its forward earnings, with analysts expecting its earnings to grow by more than 53% during the year. Thereby, making Super Micro Computer, Inc. (NASDAQ:SMCI) a cheap growth stock to buy according to analysts.

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.”