Where Will Super Micro Computer Stock Be in 5 Years?
With its shares up by over 4,000% in the past five years, an investment in Super Micro Computer (NASDAQ: SMCI) has been life changing for early investors. To put things in perspective, a $1,000 investment in mid-2019 would be worth $41,000 today, compared to just $1,760 in the S&P 500.
But can this Silicon Valley hardware company continue trouncing the market as AI-related hype takes a back seat to fundamentals? Let's dig deeper into what the next half-decade could have in store.
Just like in the California Gold Rush of the 19th century, the artificial intelligence (AI) megatrend is boosting "picks and shovels" companies that sell enabling hardware more than it's boosting their consumer-facing clients (the metaphorical miners). While Super Micro doesn't design and manufacture AI training chips like its partner Nvidia, it helps turn these products into energy-efficient servers that its clients can use in their data centers.
Source Fool.com
