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[gfp927z]

Derf, >> 400 shares SMCI <<

That's still a nice size position, and at 37 that's a 15 bagger, so nice going (!)

After seeing one of your posts on another board I picked some up SMCI at 469, and within a week it's up to 579, so not too shabby :o) I had never heard of the stock prior to your post, but SMCI looks very well positioned, the numbers and chart look good, so what the heck. On the 6 month chart it looked near term overextended, but the 3 year chart shows it had been in a 8 month sideways consolidation and the recent move is a breakout. So that puts an entirely new light on the recent strength, and on a fundamental basis it sounds like the valuation may actually still be on the cheap side, compared to other Ai oriented stocks. SMCI supplies gear to the data centers, and these have been solid longer term investments (Equinix / EQIX). Anyway, thanks for the heads up on SMCI :o) I only have a small position, but looks like a nice longer term buy / hold.


>>> Why Super Micro Computer Stock Rocketed to New Highs This Week


by John Ballard

The Motley Fool

Feb 1, 2023


https://finance.yahoo.com/news/why-super-micro-computer-stock-000323378.html


Week to date, shares of Super Micro Computer (NASDAQ: SMCI) were up 23% through Thursday's market close, according to data provided by S&P Global Market Intelligence. The demand for artificial intelligence (AI)-driven computing is driving accelerating revenue growth and profits for this leading supplier of rack-scale solutions for data centers.

Despite the stock's massive run over the last year, the company is seeing market share gains for its products and raised full-year revenue guidance.

Why Super Micro Computer revenue was up more than 100% in the fiscal second quarter

In the company's fiscal 2023 annual report, CEO Charles Liang said the ongoing growth in AI computing could be potentially more impactful to the world than the industrial revolution over 200 years ago. His company is certainly growing like it. Earlier this week, Super Micro reported a record $3.66 billion in revenue for the fiscal second quarter ending Dec. 31, a year-over-year increase of 103%.

The company continues to benefit from the demand for Nvidia's graphics processing units (GPUs), so as those chips are coming into better supply, it is driving more sales of Super Micro's rack systems for AI.

Management expects fiscal 2024 revenue to double to between $14.3 billion to $14.7 billion "With AI applications booming, I expect the $20 billion annual revenue target to be just a few years away," Liang said in his annual letter to shareholders last year.

Why the stock has room to run

Despite rocketing 700% over the last 12 months, the stock is still reasonably priced. It reported adjusted earnings per share of $5.59, up from $3.26 in the same quarter last year. That's an annual run rate of $22.36, which gives a forward price-to-earnings ratio of 25.9.

Given that fair valuation, Super Micro's run is likely not over.

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