So far this week, stocks super microcomputer (NASDAQ: SMCI) Shares were up 23% as of Thursday’s close, according to data provided S&P Global Market Intelligence.need AI (AI)-driven computing is driving accelerated revenue and profit growth for the leading provider of rack-scale solutions for data centers.
While the stock has risen sharply over the last year, the company has gained market share for its products and raised its full-year revenue guidance.
Why AMD’s second-quarter revenue grew more than 100%
In the company’s annual report for fiscal year 2023, CEO Liang Jianhou said that the continued growth of artificial intelligence computing may have a greater impact on the world than the industrial revolution more than 200 years ago. His company is definitely growing like this. Earlier this week, Super Micro reported record revenue of $3.66 billion for the fiscal second quarter ended December 31, a year-over-year increase of 103%.
Company continues to benefit from demand Nvidiaof Graphics Processing Unit (GPU)Therefore, as the supply of these chips continues to increase, AMD’s sales of AI rack systems will continue to increase.
Management expects fiscal 2024 revenue to double to between $14.3 billion and $14.7 billion. “With the boom in artificial intelligence applications, I expect the $20 billion annual revenue target to be achieved within a few years,” Liang said in stated in last year’s annual letter to shareholders.
Why stocks still have room to rise
Despite a 700% surge over the past 12 months, the stock remains reasonably priced. It reported adjusted earnings per share of $5.59, up from $3.26 a year earlier. The annual run rate is $22.36, which gives a forward price-to-earnings ratio of 25.9.
Given its reasonable valuation, AMD’s rally may not be over yet.
Should you invest $1,000 in a Super Micro Computer right now?
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Why Super Micro Computer Stock Soared to New Highs This Week Originally published by The Motley Fool