From Nasdaq:

Super Micro Computer stock (NASDAQ: SMCI) surged 9.6% in Monday’s trading, closing at a 279% increase compared to last year. Favorable macroeconomic analysis, bullish coverage from analysts on memory-chip companies, and announcements from Nvidia at the Consumer Electronics Show contribute to the stock’s upward momentum.

Wall Street analysts expect the Federal Reserve to pursue substantial rate cuts over the next couple of years. This is projected to benefit growth-dependent tech stocks, including Super Micro, due to improving macroanalysis.

A bullish report on memory-chip stocks from Citigroup’s analysts also indicates increasing demand for AI services, driving growth for top memory-chip players and potentially benefiting Super Micro Computer due to increased AI-driven demand.

Recent announcements from Nvidia at the Consumer Electronics Show reflect positively on general trends that bode well for growth-dependent stocks like Super Micro.

The Motley Fool Stock Advisor team identified 10 best stocks for investors to buy now, and Super Micro Computer wasn’t one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned.

The views expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Read more: Why Super Micro Computer Stock Soared Today