Why Super Micro Computer Stock Surged Thursday Morning

Shares of server and storage solution specialist Super Micro Computer (NASDAQ: SMCI), also known as Supermicro, resumed their relentless push higher Thursday, surging by as much as 21%. As of 10:56 a.m. ET, the stock was still up 19.4%.

A check of all the usual sources -- regulatory filings, analyst commentary, and financial reports -- found no company-specific news fueling the gains, which suggests the rise was due primarily to a robust earnings report from a leader in the artificial intelligence (AI) revolution: Nvidia (NASDAQ: NVDA).

For its fiscal 2024 fourth quarter (which ended Jan 28.), Nvidia's revenue soared by 265% year over year to a record $22.1 billion. The chipmaker's profits were equally robust as adjusted earnings per share (EPS) surged by 486% to $5.16. Nvidia has arguably been one of the biggest beneficiaries of the accelerating adoption of generative AI, and its performance bodes well for continued strong growth for Supermicro.

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Source Fool.com