Jim Cramer Reveals 12 Stocks Investors Should Monitor Closely

10. Super Micro Computer Inc. (NASDAQ:SMCI)

Number of Hedge Fund Investors: 47

Jim Cramer mentioned that Needham has begun coverage of Super Micro Computer Inc. (NASDAQ:SMCI) with a “buy” rating and set a price target of $600. However, he expressed that he is still waiting for more clarity regarding Super Micro Computer Inc. (NASDAQ:SMCI)’s accounting practices before feeling fully confident in the investment.

“Needham likes Super Micro Computer and started coverage with a buy and a $600 price target. I am still waiting for some clarity when it comes to the company’s accounting.”

Super Micro Computer, Inc. (NASDAQ:SMCI) has a strong outlook, reflected in its impressive Q2 2024 performance, which showed $1.5 billion in revenue, a 30% increase from last year, and a net income of $100 million. This growth is driven by high demand for Super Micro Computer, Inc. (NASDAQ:SMCI) computing solutions, especially in data centers and AI applications.

The rising investment in data centers, fueled by cloud computing and AI, positions Super Micro Computer, Inc. (NASDAQ:SMCI) well in this growing market. Super Micro Computer, Inc. (NASDAQ:SMCI) offers innovative server solutions specifically designed for hyperscale data centers. By focusing on AI and machine learning technologies, Super Micro Computer, Inc. (NASDAQ:SMCI) optimizes its servers for these applications to meet the increasing needs of businesses adopting AI.

What sets Super Micro Computer, Inc. (NASDAQ:SMCI) apart from competitors is its ability to deliver customized solutions, attracting a diverse range of clients, including enterprises and government organizations. Super Micro Computer, Inc. (NASDAQ:SMCI) is also expanding globally by entering emerging markets that require advanced computing solutions, which should further boost revenue. Effective supply chain management ensures timely product delivery, enhancing customer relationships and competitiveness.

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.”