This AI Stock Is Up 254% Year-To-Date — And It's Not Nvidia

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April 1 often brings a flurry of pranks and jests, but in the world of finance, some stories are no laughing matter.

One stock has quietly delivered staggering returns that are anything but a joke. While Nvidia Corp has been grabbing headlines with its impressive performance, another company has managed to outshine even the tech giant.

Enter Super Micro Computer Inc (NASDAQ: SMCI). The San Jose, California-based company is the unsung hero of 2024 thus far.

As investors glance at the S&P 500 component year-to-date returns, they might expect to see Nvidia leading the pack, given its renowned status in the tech industry. However, to the surprise of many, Super Micro Computer has taken the lead substantially.

Two Catalysts Boosting SMCI's Unprecedented Growth

Super Micro Computer is known for its advanced server and storage solutions, particularly optimized for AI workloads, catering to the rapidly expanding demand for AI technology.

Two strong catalysts that have been boosting Super Micro Computer stock:

  • AI-Optimized Solutions Demand: Super Micro Computer's exponential growth is driven by skyrocketing demand for AI technology. Its advanced server solutions cater specifically to AI workloads, meeting the needs of this rapidly expanding market.
  • Strategic Partnerships: Super Micro's success is bolstered by strategic alliances with major AI chip producers such as Nvidia and Advanced Micro Devices (NASDAQ: AMD). These partnerships position the company perfectly to capitalize on the projected robust expansion in the AI chip market.
With a remarkable year-to-date return of 253.94%, Super Micro Computer Inc has defied expectations and left its competitors in the dust.

While Nvidia stock has certainly enjoyed a respectable YTD return of 82.91%, it pales in comparison to the staggering growth witnessed by Super Micro Computer stock This lesser-known company has managed to capture the attention of investors with its exceptional performance, showcasing the potential for substantial gains beyond the realm of household tech names or the Magnificent Seven stocks.

Super Micro Computer stock's meteoric rise is a testament to the untapped opportunities present within the market. Recent analyst ratings on the stock indicate that the stock could offer an upside of about 25% to 32% from current price levels by year-end 2024.

SMCI Price Action: SMCI stock is currently up more than 1.79% and trades at $1,028.06 per share. It closed Friday, March 28 at $1,010.03 a share.