We recently published a list of 10 Stocks To Trade Without Tariffs And Interest Rate Fears. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against other stocks to trade without tariffs and interest rate fears.
The Federal Reserve this week decided to keep interest rates unchanged, causing Donald Trump to lash out at the Fed chief. Jerome Powell seemed satisfied with the current state of the economy and the job market. What he did not like was the high uncertainty prevailing in the market.
There’s a good reason why the uncertainty is causing problems for the Fed. It can’t reliably predict the future path of the economy if it doesn’t know what data to put in its models. This is pretty much the same problem that stock analysts have. With tariffs causing problems for American businesses, many investors are seeing their portfolios shrink.
In such a scenario, we decided to look at stocks that are largely protected from both tariffs and interest rates. This ‘protection’ comes from the fact that their bull thesis is unlikely to be impacted by either of these factors.
To come up with the list of stocks protected from tariffs and interest rates, we looked at the recently released list of Goldman Sachs’ top stocks with micro-driven volatility.
A team of technicians in a server room, testing and managing the newest server solutions.
Super Micro Computer, Inc. (NASDAQ:SMCI)
Super Micro Computer, Inc. is a manufacturer and developer of storage solutions and high-performance servers. The company serves cloud computing, 5G and edge computing, artificial intelligence, and data center markets.
SMCI stock is up 28% this year but over the past year, it has lost more than half its value. The recent Nasdaq compliance is driving up the price and there is optimism that the firm will mend its ways and implement better financial controls in its business. Bigger investors may still be avoiding the stock but once they see the management’s resolve, they might want to come back in at discounted levels. That’s where the stock will take off.
This disconnect between the investors and analysts is what drives the company’s bullish thesis. On a fundamental level, the company’s customized server solutions are still in high demand. Oracle’s recent earnings showed the demand for cloud services is still as strong as ever.
Now that the company can finally focus on the business, the rising demand from Blackwell GPUs ramp-up is the perfect opportunity for investors, irrespective of where the economy is headed.
Overall, SMCI ranks 1st on our list of stocks to trade without tariffs and interest rate fears. While we acknowledge the potential of SMCI as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SMCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
