If you invested $5,000 in Super Micro Computer stock five years ago, here’s how much you would have today.
Supermicro’s stock price has soared recently.
super micro computer (SMCI -4.00%) This is nothing new to the tech industry. The manufacturer of servers, workstations and full rack-scale solutions has actually been around for 30 years, but its growth has only begun in the past few years due to the demands of its artificial intelligence (AI) customers. Companies are developing AI programs, and for this, they need items that Supermicro builds.
Technology players said in the most recent quarter that there was demand for AI rack-scale solutions, including chips from leaders such as: nvidia and advanced micro devices It soared to record levels. And all of this has helped its profits and stock price soar. If you invested $5,000 in this AI star 5 years ago, how much would you have now? Let’s explore.
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Serving AI customers
If you bought $5,000 worth of Supermicro stock five years ago, that investment would be worth a whopping $220,000 today. This is because Supermicro’s stock price soared more than 4,300% during that period. This huge win is thanks to Supermicro’s ability to serve AI customers and keep pace with the industry’s rapid pace of innovation.
There are two reasons why a company might do this: First, Supermicro’s building block method of constructing products involves the use of many common components. This accelerates the product customization process for customers. Second, Supermicro closely follows the latest innovations from leading chip manufacturers, allowing the company to immediately include them in their systems.
This strategy clearly paid off. In the most recent quarter, sales and net income soared by triple digits, with sales of more than $3 billion in a single quarter surpassing annual sales as recently as 2021.
But if you haven’t purchased shares of Supermicro yet, don’t worry. The AI growth story is in its infancy, with the market expected to reach more than $1 trillion by 2030. This means Supermicro stock still has a lot of room to run.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
