Nvidia, Microsoft, Alphabet, and other tech giants of the remaining members of the “Magnificent Seven,” last year set in motion the age of artificial intelligence.

Markets changed rapidly as a revolutionary new technology promised to reshape entire industries. By now, you are familiar with the narrative.

However, other businesses with even greater returns have begun to surface, separate from the large winners like Nvidia, whose shares have increased by around 400% in the past year.

One is Super Micro Computer (SMCI).

Even with Friday’s 20% sell-off, the company’s stock chart, as you can see, still resembles a perfect hockey stick when seen in the context of its 2023–24 surge. It’s Mav free climbing with Goose. It starts off flat and stays that way until suddenly it skyrockets. This is the tale of artificial intelligence.

Building servers from scratch gives Super Micro the ability to customize things that others would not be able to, which makes it ideal for AI applications, according to Bank of America’s just released analysis and rating (Buy, with a $1,040 price objective). After thirty years of development, it has become an AI moonshot winner.

The stock has increased 176% this month and 841% over the last year, demonstrating that investors are comfortable enough to trust the contents of this real black box of hardware technology. The market does not appear to be concerned with its small controversies from previous several years involving friendly ties with China, Russia, and Iran.

These trading patterns are being produced by corporate AI mentions as investor excitement and FOMO continue to fuel a rush to invest in today’s possible winners.

This phenomenon has been observed in chips (Nvidia), chip architecture and production (ARM, Super Micro), consumer software (Microsoft), business-to-business software (Palantir), and devices (all the latest laptops and phones with AI chips).

Now, in the second year of the AI revolution, smaller businesses that still provide exposure to the industry are receiving some of the attention, at least in part, from these established giants. Corporate guidance, analyst notes, or even large stakes taken by Uncle Nvidia, as it did this week, can occasionally draw attention to a company, which will then take off. All it takes is for investors to recognize the next big opportunity in an undervalued AI company, and then the company prices soar.





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