We recently compiled a list of the 10 AI News and Ratings Investors Should Not Miss. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against the other AI stocks in the news.
As demand for AI-powered applications grows, major tech firms are investing in alternative eneergy solutions to support data center requirements. Amazon, for instance, has committed to nuclear energy projects with X-energy and Dominion Energy, focusing on building small modular reactors (SMRs) to meet the intensive energy needs of its data centers while striving for carbon neutrality. This shift to nuclear energy is expected to help the AWS parent reach its net-zero goals by 2040 while managing the escalating power demands driven by AI and cloud services.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, Apple has previewed several AI enhancements, including integration with ChatGPT for more advanced on-device tasks, such as text generation and question-answering in iOS 18.1. This addition aligns with its approach to cautiously integrate AI, emphasizing user experience improvements while enhancing privacy through device-based processing. The company’s developments aim to increase iPhone appeal and could impact the smartphone market by encouraging upgrades for new AI capabilities.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of technicians in a server room, testing and managing the newest server solutions.
Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 47
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. On November 6, Mizuho suspended the rating and price target on Super Micro citing the lack of full financial details and audited statements. While Super Micro is growing its sales 100% year-over-year as an artificial intelligence leader positioned to ramp on Nvidia’s Blackwell, there are near-term uncertainties with the November 16 Nasdaq approval and audited annual filing, the advisory told investors in a research note.
Overall SMCI ranks 8th on our list of the AI stocks you should not miss. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SMCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
