TLDR:
- Super Micro Computer is experiencing significant sales growth, with a surge of over 100% reported recently.
- The company is forecasting EPS growth of ~250% in the current quarter, driven by increased demand for infrastructure solutions.
Key Elements:
Super Micro Computer, a provider of server and storage solutions, is benefiting from the AI revolution with a surge in sales and forecasted EPS growth. The stock has experienced a major rally but is still reasonably priced at 27.5x FY25 EPS targets. The company is collaborating with leading AI chip providers like NVIDIA, AMD, and Intel, and it is well-positioned to capitalize on the increasing demand for AI infrastructure. Super Micro is expanding its production capacity to meet the growing market demand and is forecasting significant revenue growth, aiming to reach $25+ billion in sales. Despite concerns about low gross margins, the company’s growth potential and valuation suggest it could be an attractive investment opportunity for the future.