Up 200% This Year, Is It Too Late to Buy Super Micro Computer Stock?
Shares of Super Micro Computer (NASDAQ: SMCI) have pulled back after hitting a 52-week high of $1,077 in February. The stock currently hovers around $873, equaling a year-to-date increase of 207%, following a positive quarterly report from Nvidia (NASDAQ: NVDA) that points to growing demand for Supermicro's server solutions.
The incredible performance has investors wondering if the company's recent growth is sustainable, and if so, how much upside may be left in the shares. Supermicro, as it is better known, is not as dominant in its market as Nvidia is in artificial intelligence (AI) chips, but that doesn't mean the stock isn't worth buying.
Supermicro is a leading supplier of AI-optimized servers and rack solutions for data centers. The company's plug-and-play rack systems house the advanced chips from leading semiconductor providers, so when Nvidia reports booming demand for its chips, it is good news for Supermicro's business.
Source Fool.com
