Server and storage system manufacturer Super Micro Computer (NASDAQ: SMCI) has gone from an under-followed value stock to a top pick among investors looking to bet on artificial intelligence (AI). 2023 was an excellent year: The stock soared nearly 250% higher.

By all indications, Super Micro could still be a great value right now. But I'm passing once again on this data center and enterprise compute manufacturer. Here are three reasons why.

Super Micro's head of steam has been building thanks to generative AI. Chip companies like Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), and Intel (NASDAQ: INTC) have been tapping the manufacturer to assemble servers (a powerful computer that gets installed in a data center or business office) that power AI applications. It's also getting in on the Arm Holdings data center server game and has a new lineup of servers using chip design start-up Ampere Computing Arm-based chips.

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Source Fool.com