From Nasdaq:

Investor interest in AI technology and stocks is on the rise, with semiconductors like CPUs and GPUs being critical for AI applications. Super Micro Computer (NASDAQ: SMCI) stands out as a lucrative investment opportunity due to its close ties to chip manufacturers. With the stock showing impressive growth, some investors are wondering if Super Micro Computer could grow into a trillion-dollar company.

While interest in sectors like the metaverse and blockchain has surged, AI technology remains popular among investors. But not all companies involved in AI will succeed. Super Micro Computer’s promising growth could be a result of strong partnerships with leading chip manufacturers like Nvidia and AMD.

Super Micro Computer has seen a significant increase in its stock price, partly due to of the trading activity around mainstream chip stocks like Nvidia. While the company has delivered on earnings, many factors should be considered before investing.

Super Micro Computer currently has a market cap of $44 billion and is projecting revenue of up to $14.7 billion for the next fiscal year. In order to become a $1 trillion company by 2030, the company would need to sustain a compound annual growth rate of over 40%, which is unlikely to be achieved.

Analysts conclude that while Super Micro Computer has strong growth potential, it might not be the best investment at the moment.

Before investing in Super Micro Computer, it is essential to consider the advice of the Motley Fool Stock Advisor analyst team before making any decisions. The analyst team identified other stocks that they believe have better potential for significant returns.



Read more: Will Super Micro Computer Be a Trillion-Dollar Company by 2030?