We recently published a list of 14 AI News and Ratings Making Waves on Wall Street. 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 making waves on Wall Street.
According to a Fortune Business Insights report, the global data center market, valued at $242.72 billion in 2024, is expected to grow to $585 billion by 2032, at a compound annual growth rate of 11.7%. North America led the market in 2024, holding a nearly 39% share.
According to the report, generative AI is significantly impacting the sector, as its deep learning models require substantial computing power, scalable storage, and high-performance infrastructure. The market is also shifting towards hybrid and multi-cloud strategies, enabling organizations to integrate public, private, and on-premise solutions efficiently. Additionally, modular data centers are gaining traction due to their cost-effectiveness, scalability, and faster deployment compared to traditional facilities, the report stated.
Meeting AI Demand with Scalable and Sustainable Data Centers
The expansion of AI infrastructure through large-scale data center investments reflects the growing need for computational power. Companies are securing energy sources and developing specialized facilities to address scalability, sustainability, and efficiency challenges. For example, Related Companies is advancing into AI-driven data center development through its new division, Related Digital, using its expertise in renewable energy to meet rising demand from major tech firms.
In an interview at CNBC’s ‘Squawk on the Street,’ CEO Jeff Blau highlighted the company’s strategic move to assemble a specialized team to lead these projects. To support the growth, Related has secured sites with over five gigawatts of power across the U.S., investing $500 million of its own capital while planning to raise an additional $8 billion. With firms like Microsoft and Alphabet significantly increasing their capital expenditures, demand from hyperscalers remains strong. To mitigate risk, Related is securing long-term, 15-year commitments from tenants before beginning construction. Given the limited availability of power on the grid, Blau sees the company’s early investment in securing capacity as a major competitive advantage in the fast-evolving AI infrastructure landscape.
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 Q4 database of over 1000 hedge funds.
At Insider Monkey we are obsessed with 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 373.4% since May 2014, beating its benchmark by 218 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: 45
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and sells high-performance server and storage solutions, including modular systems, networking devices, and management software for different IT markets.
On March 27, Super Micro (NASDAQ:SMCI) introduced new single-socket servers designed to handle workloads that previously required dual-socket systems, offering cost savings and improved efficiency for data centers. The latest servers, featuring Intel Xeon 6 processors with P-cores, provide higher core counts, faster memory, and increased PCIe 5.0 lanes, allowing improved performance without the need for dual processors. The architecture reduces power consumption, cooling demands, and physical space requirements while eliminating CPU interconnect latency.
The new product lineup includes SuperBlade for high-performance computing, Hyper for AI workloads, CloudDC for cloud data centers, WIO for flexible I/O configurations, Top-loading Storage for dense storage needs, GrandTwin for memory-intensive applications, and Edge for compact deployments. These solutions cater to industries such as AI, cloud computing, networking, and enterprise infrastructure, providing optimized performance with a lower total cost of ownership. Charles Liang, president and CEO of Super Micro (NASDAQ:SMCI) commented:
“Our new single-socket servers support 100% more cores per system than previous generations and have been designed to maximize acceleration, networking, and storage flexibility. Supporting up to 500-watt TDP processors, these new systems can be configured to fulfill a wide range of workload requirements.”
Overall, SMCI ranks 8th on our list of AI news and ratings making waves on Wall Street. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
