To The Moon

In the AI deity-making frenzy, $NVIDIA Corp(NVDA)$ strides confidently towards the altar.

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However, it took nearly 15 months after ChatGPT's debut for people to realize NVIDIA's core ally: $SUPER MICRO COMPUTER INC(SMCI)$

Over the past year, $SUPER MICRO COMPUTER INC(SMCI)$ 's stock surged by 980%, easily outpacing the "Big Seven" tech stocks in the US market, while $NVIDIA Corp(NVDA)$ , $Meta Platforms, Inc.(META)$ , $Advanced Micro Devices(AMD)$ , and $Microsoft(MSFT)$ saw gains of 216%, 169%, 105%, and 51%, respectively.

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Super Micro Computer is a top-three global server manufacturer, with NVIDIA as its main customer. Specializing in high-performance servers, its products encompass servers, storage systems, network switches, and software for website hosting, data storage, and AI training.

Super Micro Computer, Inc. - Supermicro COMPUTEX Keynote Unveils Company's Accelerate Everything Strategy for Product Innovation, Manufacturing Scale, and Green Technology

Recent reports from Wedbush analysts indicate that Super Micro Computer's substantial sales growth primarily stems from the surge in demand for NVIDIA GPUs by large corporations.

As a result, Super Micro Computer has emerged as the highly acclaimed "top AI stock," propelling its founder,Charles Liang, to billionaire status and joining Jensen Huang and Lisa Su as the three leading figures driving this AI wave.

Supermicro on X: "Watch Supermicro CEO, Charles Liang's #COMPUTEX keynote to discover how we are advancing the future of #AI through green computing and our Total IT Solutions, featuring special guest NVIDIA

However, Super Micro Computer wasn't initially in the spotlight during the AI surge. Its stock hit a low of $34.11 in 2022, with a market cap of only $1.893 billion. Even by the end of 2023, its stock price was just $284.26.

Yet, in less than two months, its stock price surpassed $1,000, with a cumulative gain of 177.06% since the beginning of the year.

Market consensus suggests that Super Micro Computer's 2024 stock surge is likely attributed to Jensen Huang's strategic moves. The stock trends show a clear positive correlation between Super Micro Computer and NVIDIA.

• In 1993, both $NVIDIA Corp(NVDA)$ and $SUPER MICRO COMPUTER INC(SMCI)$ were founded in Silicon Valley, with headquarters just 16 kilometers apart, a 15-minute drive away.

• Both founders were born in southern Taiwan, with Charles Liang graduating from the Department of Electrical Engineering at Taipei Institute of Technology.

• Charles Liang founded Super Micro Computer in 1993, which went public on NASDAQ in March 2007 at a price much lower than expected but continued to thrive.

• Despite nearly delisting in 2018 due to failure to submit annual reports, $SUPER MICRO COMPUTER INC(SMCI)$ found a turning point at the end of 2022, coinciding with the rise of $NVIDIA Corp(NVDA)$ as a sought-after AI stock with the emergence of ChatGPT.

• Jensen Huang has publicly thanked Charles Liang for his support during NVIDIA's early days. They collaborated on building servers and had close interactions at the 2023 Taipei International Computer Show.

$SUPER MICRO COMPUTER INC(SMCI)$ has become the fastest-growing company in the AI industry, with its stock price soaring from around $90 at the end of 2022 to a peak of $1,077, giving it a market cap of $44.05 billion, surpassing more than half of the $S&P 500(.SPX)$ constituents.

Tipranks's targets predict of SMCI

Successfully capitalizing on the AI windfall, Super Micro Computer's strategic shift towards AI servers played a crucial role. The company entered the high-speed computing market early and gained market favor with innovative products like liquid-cooled servers. Now, over half of its revenue comes from AI-related servers, far exceeding previous years' proportions.