Is It Too Late to Buy Super Micro Computer Stock as It Keeps Surging Higher?
After more than tripling just so far in 2024, the rally in shares of Super Micro Computer (NASDAQ: SMCI) continued Monday. Supermicro, as it's known, will be added to the S&P 500 index before the opening of trading on March 18.
That's just the latest catalyst for the stock of the maker of servers for artificial intelligence (AI) applications. And it shouldn't be unexpected since the stock's market cap has now soared to about $60 billion. What investors need to know now is whether the company is worth that valuation and whether the stock's meteoric rise will continue.
Supermicro's rally comes as investors continue to see more and more companies reporting massive sales growth for AI-related equipment. Nvidia is perhaps the most well-known beneficiary of the AI boom, but even Dell Technologies' shares surged more than 30% last week after it reported robust demand for its AI servers. Supermicro shares have been riding that same AI demand wave.
Source Fool.com
