Supermicro Soars into S&P 500 Amid Booming AI Server Market Growth
May 4, 2024
Super Micro Computer, known as Supermicro, has been added to the S&P 500, indicating its growth in the AI server sector.
The company's AI-focused accelerated computing platforms are expected to grow its market share from 10% in 2023 to 17% in 2026.
Despite a minor third-quarter setback, Supermicro's financials are strong, with record demand for its AI systems.
Analysts forecast a 49% annual increase in Supermicro's earnings per share over the next three to five years, suggesting a solid investment opportunity.
Supermicro's fiscal 2024 third-quarter revenue hit a record $3.85 billion, with a 308% jump in adjusted EPS.
Though not listed among Motley Fool Stock Advisor's top 10 stocks, Supermicro is poised to capitalize on the AI server market's anticipated 47% annual growth from 2023-2028.
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