Shares of Super Micro Computer (NASDAQ: SMCI) were rallying on Thursday, up a whopping 7.5% on the day as of 2:35 p.m. ET.

Unlike many other beaten-down stocks that are rallying today, Super Micro had already appreciated mightily in 2023, up a whopping 233% on the year. Still, the stock remains about 25% below its early August highs. So the prospects of lower interest rates and an economic "soft landing" appear to be spurring a "risk on" mentality in cyclical stocks, such as financials, industrials, and, in the case of Super Micro, technology hardware.

In addition, Super Micro issued a press release today highlighting new availability of servers built with the new (NASDAQ: INTC) fifth-generation Xeon server processor, perhaps incrementally increasing excitement for this AI stock.

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Source Fool.com