Should You Buy Smci

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Should You Buy Smci

Should You Buy Super Micro Computer (Smci)?

The AI boom is far from over and is actually going to move into the next phase. According to Microsoft, its cloud computing has seen massive growth thanks to AI usage.

Meanwhile, one stock that stands to gain the most from the AI boom is Super Micro Computer (SMCI). The are a data center assembler with business all over the world.

Smci Remains A Big Player

In fact, Super Micro Computer (SMCI) has gained a massive 20% in a span of just one month. With such spectacular performance, everyone is asking if they should really buy Super Micro Computer (SMCI) or not.

The revenue of the Super Micro Computer (SMCI) has jumped by 500% in the last 5 years. This is mainly due to the usage of their data center solutions to establish the AI infrastructure.

Super Micro Computer (SMCI) specializes in making data centers with special chips such as Nvidia. They spend a lot of money on these and also charge a premium to their customers.

As they look to expand their computing capacity as quickly as possible to meet demand, companies such as Microsoft will turn to Super Micro Computer for effective outsourcing of AI data center assembly.

This fiscal year, which ends in June, management is currently projecting revenue of $21.8 billion to $22.6 billion, a tiny decrease from its prior projections but still a significant increase over the $15 billion generated in the previous fiscal year.

Looking ahead, the demand for AI infrastructure is only going to rise to new heights. In such times, the obvious winner is the Super Micro Computer, which has a $23b market cap.

With so many good things going on for the Super Micro Computer, there's no reason to skip this stock from your portfolio. However, it's important to find a good entry spot to ensure you don't get caught by buying at ATH.

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