We recently published a list of 12 AI News and Ratings Investors are Keeping Their Eye On. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against other AI news and ratings investors are keeping their eye on.
How AI Is Shaping Global Power and Innovation
Josh Wolfe, co-founder of Lux Capital, discussed the current AI space and the increasing importance of both capital and human talent in the field as he joined Caroline Hyde and Mike Shepard on “Bloomberg Technology.” He highlighted how investments in large foundation models, previously seen as groundbreaking, are being overshadowed by more cost-effective open-source models and the rise of novel AI applications, especially in physical intelligence, robotics, and biology.
Wolfe pointed out the significance of AI models’ geopolitical implications, especially regarding the competition between the U.S. and China. He stressed that U.S. leadership in AI is at risk due to China’s rapid advancements and its ability to produce a significant portion of AI talent globally. Wolfe also highlighted concerns about China’s state-backed companies, such as TikTok and Huawei, which he views as extensions of the Chinese government, posing national security risks. He emphasized the importance of attracting top international talent to the U.S. to maintain a competitive edge, as China produces a large percentage of AI researchers and students.
Additionally, Wolfe noted the growing significance of AI infrastructure, especially in hardware and inference. He predicts a shift toward on-device AI processing, which could reduce reliance on cloud-based systems and change the competitive landscape in AI. On national security, Wolfe praised initiatives that foster collaboration between technologists, policymakers, and venture capitalists to strengthen U.S. competitiveness. He also expressed concern about potential challenges to scientific research funding under the current administration, urging more federal investment in basic science and research to promote innovation, especially in physical sciences, robotics, and space exploration.
Wolfe concluded by stressing the need for more support for young researchers, as significant breakthroughs often come from ambitious and unconventional ideas, and called for a stronger focus on advancing U.S. leadership in these fields.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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: 33
Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for various markets, including AI, cloud computing, and 5G, offering comprehensive products and services globally.
On February 5, Supermicro (NASDAQ:SMCI) announced the full production availability of its AI data center Building Block Solutions, powered by NVIDIA Blackwell. The portfolio includes both air-cooled and liquid-cooled systems with various CPU options and superior thermal design for efficient operation. It supports complex AI workloads with scalable infrastructure, offering systems like the NVIDIA HGX B200, which integrates advanced liquid and air cooling technologies.
Supermicro’s solutions include rack-level integration, network switching, and cluster validation for turnkey AI deployments. The company’s SuperCluster design allows scalable AI units, supporting up to 768 GPUs, and is optimized for AI deployment using NVIDIA AI Enterprise software. Furthermore, Supermicro offers full end-to-end solutions with global manufacturing and liquid-cooling expertise for large-scale AI infrastructure.
Overall, SMCI ranks 3rd on our list of AI news and ratings investors are keeping their eye on. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that 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 more promising than 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.