Super Micro Computer (SMCI) is movin’ on up.
On Monday, the San Jose, Calif.-based tech company will be leaving the S&P MidCap 400 and heading over to the greener pasturers the S&P 500.
And when we say “green,” we ain’t kidding.
Super Micro makes high-end servers used in artificial intelligence applications and now that AI is all the rage, the company has become very popular on Wall Street.
Shares skyrocketed 1,000% in 2023 and while Super Micro was going for $285.45 on Jan. 2, the stock finished the trading day on March 13 up 2.2% to $1,188.07.
Bank of America sees a big future for the server sector, thanks largely to artificial intelligence.
From 2006 to 2023, the firm said, the server market grew revenues at mid-single digit compound annual growth rate (5.4%), and units at low-single digit CAGR (2.8%).
“We see Artificial Intelligence (AI) driving most of the future growth in server revenues over the next 4-years,” BofA said in a recent report.
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