SMCI stock: Could Super Micro shares really add another 60%
Shares of Super Micro Computer (NASDAQ:SMCI) continued their relentless ascent on Thursday, surging more than 35% during the session. The SMCI stock has had one of the most impressive starts to 2024 among tech stocks, gaining over 235% year-to-date, prompting many analysts to ask: Is the SMCI stock in a bubble?
Super Micro Computer, a US company that designs and builders high-performance servers, saw its share price jump more than 30% on Thursday, surging as high as $985 at one point during the session.
At the time of writing, SMCI stock was trading at around $965.1, around 9.3% short of the all-time high it hit earlier this month.
Although many questioned the sustainability of its recent rallies, the AI-related stock continues to reward its investors, gaining a staggering 1,012% over the past year.
The company has used the recent rally in its shares to announce that it will offer $1.5 billion of convertible senior notes, due 2029.
It appears that the Thursday jump in SMCI’s stock price was driven by company-specific news.
However, speculations suggest the rally was driven primarily by a blockbuster earnings report from Nvidia (NASDAQ:NVDA), one of the primary catalysts behind the ongoing AI boom.
Akin to previous reports, the chipmaker demonstrated remarkable growth yet again in the fiscal Q4 2024, with revenues reaching a record $22.1 billion, marking a 265% increase from the previous year.
The company's profitability was also impressive, with adjusted earnings per share (EPS) escalating by 486% to $5.16.
Moreover, Nvidia issued an optimistic guidance for the fiscal Q1 2025. It expects to hit $241 billion in revenue for that quarter, which would mark a year-over-year jump of 233%.
Nvidia’s shares popped over 15%
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