We recently compiled a list of the 15 AI News Updates Wall Street Is Monitoring. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against the other AI stocks Wall Street is monitoring.
The leaders of the United States and China both participated in the recently held APEC Summit in Peru, with artificial intelligence dominating headlines again. Latest reports from Techopedia suggest that the two countries have in principle reached an agreement that neither nation would delegate control of nuclear weapons to artificial intelligence systems. White House National Security Advisor Jake Sullivan said in a statement that the agreement was not a reaction to imminent threats but a proactive measure acknowledging the leadership of both nations in AI development. Sullivan further noted the agreement reflects how, even amidst competition, the US and the PRC can work responsibly to manage risks.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, AI startups continue to draw the attention of investors. Crunchbase data shows that AI companies raised close to $19 billion in the third quarter this year, representing 28% of all venture funding. The quarter also witnessed the biggest venture capital deal of all time, with OpenAI raising more than $6.6 billion at a valuation of over $150 billion, making it the most private firm in the world. The data also shows that 44 AI startups in the US raised $100 million or more in funding. Even as concerns over return on investment in the AI space continue to grow, the VC appetite for AI firms seems far from over.
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)
Market Capitalization: $14 Billion
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. Finance news publication Barron’s recently reported that Super Micro Computer is set to submit a plan early next week that would allow the server firm to remain listed on the NASDAQ stock market. A failure to file the latest quarterly earnings report on time has threatened the position of the firm on the stock market. If the company is delisted, it would be the second time. It was delisted in August 2018 for a delay in filing reports on its finances. It regained its listing in January 2020.
Overall SMCI ranks 14th on our list of the AI stocks Wall Street is monitoring. 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.