Key Takeaways
- Shares of Supermicro Computer Inc. rose more than 6% on Monday as artificial intelligence (AI) stocks rallied.
- The company develops technology for data centers and is an Nvidia partner, so it is well positioned to benefit from the AI boom.
- Analysts at Vanda Research said Super Micro Computer could be attractive to investors who are concerned that Nvidia’s “peak retail bull market” has passed and are looking for an “AI proxy stock.”
Shares of Supermicro Computer (SMCI) surged on Monday as some artificial intelligence (AI) stocks rallied to start the week.
The stock rose more than 6% to close at $899.34. Supermicro’s shares have more than tripled since the start of the year.
Supermicro Computer, which makes server technology and hardware used in data centers, has been a big beneficiary of the AI boom. Supermicro is sharing in some of this market’s AI bonanza as a partner of the market’s AI darling, Nvidia (NVDA), and its hardware is used in some of Nvidia’s data center technology, including that used by Elon Musk’s AI company, xAI.
Vanda Research analysts suggest that Supermicro, along with Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM), are “AI proxies” that some investors might turn to if they feel Nvidia has reached “peak of the retail bull market.”
Nvidia shares rose on Monday after Wall Street analysts issued bullish outlooks. AMD rose nearly 4% and TSMC rose more than 1%. Corning shares also rose on Monday on AI optimism.
