Goldman Sachs’ Best Phase 2 AI Stocks: Top 24 High Conviction AI Stocks

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

Year To Date Share Price Gain: 67.43%

Number of Hedge Fund Investors in Q2 2024: 47

Super Micro Computer, Inc. (NASDAQ:SMCI) is a Taiwanese data center and networking equipment company. The firm enjoys a key differentiated product in the sense that its server building blocks enable it to ship plug and play products. Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock has been on quite a ride this year. The shares soared by more than 300% by March but then lost steam as the firm struggled to sell its shares even at a lower price of $862 from the then trading price of roughly $1,000. Super Micro Computer, Inc. (NASDAQ:SMCI)’s woes deepened in August after it announced a delay in filing its Form 10K after a scandalous short seller report. Consequently, the stock is down by 60% since its March peak. However, Super Micro Computer, Inc. (NASDAQ:SMCI) has kept its focus on the AI industry and it plans to leverage its strength in providing liquid cooling solutions by aiming to deliver 100,000 liquid cooled GPUs to AI factories each year. Under or over delivery could create ripples in the stock price.

Artisan Partners comments for Super Micro Computer, Inc. (NASDAQ:SMCI) during its Q2 2024 investor letter were quite telling:

“Super Micro Computer manufactures server racks for central processing units and GPUs that have experienced an artificial intelligence-driven uptick in demand from its cloud and enterprise customers. This company has been on our radar for years, and we met with them in our Milwaukee offices in early 2023. However, we don’t consider the stock investable given corporate governance issues.

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