Why Super Micro Computer, Inc. (SMCI) Soared Last Week

We recently compiled a list of the Last Week’s Top 10 Stocks Post Double-Digit Gains. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against the other stocks.

The stock market may have registered losses on Friday, but remained firmer on a week-on-week basis, with the bellwether indices continuing to track further developments from the growing trade tensions globally.

On a weekly basis, the Dow Jones was up 0.5 percent, the S&P 500 grew 1.47 percent, while the tech-heavy Nasdaq increased 2.57 percent.

Meanwhile, ten companies mirrored broader market optimism, booking as much as double-digit gains in just the last five trading days.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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Super Micro Computer, Inc. (NASDAQ:SMCI)

Super Micro Computer, Inc. (NASDAQ:SMCI) saw its share price for the week increase by 32 percent to $47.91 last Friday from the $36.28 closing a week earlier, as investor sentiment was buoyed by its optimistic long-term business outlook.

Last week, the company said it expects to have achieved revenues for the second quarter of fiscal year 2025 to register between $5.6 billion and $5.7 billion, or a 54-percent increase year-on-year.

Diluted net income per share was pegged between 50 cents to 52 cents, or flat from the same period year-on-year.

Meanwhile, Super Micro Computer, Inc. (NASDAQ:SMCI) said it expects to book revenues of $40 billion for fiscal year 2026, way higher by $10 billion than the analyst consensus, with growth expected to be driven by the integration of DLC technology, which is seen to be adopted by around 30 percent of new data centers over the next 12 months.

Overall SMCI ranks 7th on our list of last week’s top gainers. 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 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.