This is a story about two companies that make special computer parts. One of them is called Nvidia and the other one is called Super Micro. Both of these companies are doing really well because they help computers think and learn, which is called artificial intelligence or AI. People who have money want to invest in these companies because they think they will make even more money in the future.
A long time ago, in 2007, some people invested $1,000 in Super Micro when it first started selling its shares. Now, those shares are worth much more, about $100,415! That means if they bought 125 shares back then, they have 9,942% more money now because of the company's growth. This is a lot better than another way to invest their money in something called the Nasdaq Composite Index ETF, which only made them 667% more money. So, people are very excited about these companies and want to put even more money into them.
Read from source...
- The title is misleading and sensationalized. It implies that Nvidia's rally is somehow overshadowing a better opportunity with Super Micro, but in reality, both stocks have performed extremely well since their respective IPOs.
- The article focuses too much on the percentage returns of Super Micro's shares, without providing any context or comparison to other benchmarks or peers. For example, how does Super Micro's performance stack up against the Nasdaq Composite Index, the S&P 500, or other semiconductor companies?
- The article relies heavily on quotes from analysts and fund managers, who may have their own agendas or biases. It does not present any independent analysis or verification of the claims made by these sources, nor does it disclose any potential conflicts of interest.
- The article uses vague and exaggerated terms like "explosive sales and earnings growth", "outstanding results and guidance", and "money is on the move". These phrases create a sense of urgency and excitement, but they do not provide any concrete evidence or data to support them.
- The article does not address any of the challenges or risks that Super Micro may face in the future, such as competition, regulatory issues, supply chain disruptions, or macroeconomic factors. It also does not explain how Super Micro plans to sustain its growth and innovation in the long term.
Positive
Key points:
- Super Micro Computer is an AI-levered stock that has witnessed a 9,900% rocket ride since its IPO in 2007
- The company is growing its revenue and backlog, with 50% of it tied to accelerators like GPUs
- Analyst expects the AI server market to grow at a 50% CAGR over the next three years, outpacing the overall server market
- Fund manager Louis Navellier says Super Micro is beating Nvidia this year and money is flowing into small and mid-cap companies with explosive growth potential
- Returns from a $1,000 investment in Super Micro IPO would have been 9,942%, compared to 667% for the Nasdaq ETF