Key Points

• Super Micro was seemingly vindicated from its accounting scandal at the end of 2024.

• Yet growth slowed as the Nvidia's AI customers moved from Hopper to Blackwell.

• But the company also inked a $20 billion deal in Saudi Arabia, spurring hope for the Blackwell cycle.

• 10 stocks we like better than Super Micro Computer ›

Shares of AI-focused server-maker Super Micro Computer (NASDAQ: SMCI) rallied 60.8% in the first half of the year, according to data from S&P Global Market Intelligence.

Super Micro entered 2025 after a somewhat disastrous second half of 2024, when it was attacked by a short-seller, followed by its auditor resigning in October.

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However, in February, Super Micro's new auditor, BDO, signed off on the company's financials from the prior three years. The seeming validation of the company, as well as optimism over AI growth in May and June, lifted shares strongly off a cheap valuation to start the year.

BDO signs off, and Super Micro blasts off

In its audit, BDO delivered an adverse opinion on Super Micro's internal controls and procedures; however, when actually reviewing transactions from 2022, 2023, and fiscal 2024, BDO noted that Super Micro's financial statements, "present fairly, in all material respects, the financial position of the Company."

So, Super Micro, while apparently being somewhat sloppy in its back-office procedures for a U.S. public company, was apparently cleared of the worst accusations of fraud. As a result, the company's stock rallied to over $66 per share in early February.

However, that rally was short-lived, as the stock soon gave way to the Trump Administration's tariff war. While Super Micro prides itself on being a U.S.-based server maker, its component supply chain and those of its chipmaking partners is very international. Thus, Super Micro soon fell back to earth along with many fellow AI companies.

Super Micro actually also had two somewhat disappointing earnings reports, as revenue growth missed expectations in both the December and March quarters. Still, the company posted 54.9% growth in the December quarter and 19.5% growth in March, which isn't so shabby.

Image source: Getty Images.

Management chalked up the misses to a delay in the release of Nvidia's (NASDAQ: NVDA) Blackwell chips, which only began production in late 2024 and ramped up throughout the first quarter. So, it's possible that availability may have been limited in the March quarter as, "customers delayed making platform decisions," according to the company. But management also forecast a 30% sequential step-up in revenue for the current June quarter, which should mark the beginning of the Blackwell cycle for Super Micro.

About a week after May's earnings, Super Micro got another positive jolt after it inked a multi-year, $20 billion deal with Datavolt, a Saudi Arabian data center operator, as part of the Trump administration's strategic partnership with Saudi Arabia. Unsurprisingly, Super Micro and other AI companies rallied in the wake of that announcement.

Where Super Micro goes from here

Despite the first-half rally, Super Micro still remains far off its 2024 highs, and only trades at 16 times next year's earnings estimates.

That's not expensive for a high-powered AI stock, but Super Micro's uneven growth, questions over margins, and perhaps investor hesitance due to last year's short-seller attack have limited its valuation. It will be interesting to see how results come through as Blackwell ramps, and whether investor sentiment can continue recovering.

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,010,880!*

Now, it’s worth noting Stock Advisor’s total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

Billy Duberstein and/or his clients have positions in Super Micro Computer. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Super Micro Computer (NASDAQ: SMCI) is experiencing a massive surge in AI server demand that could fuel explosive growth, unless supply chain strains or competition cut the rally short. In this video, I dig into the drivers, the dangers, and where Super Micro stock might stand five years out.

*Stock prices used were the after-market prices of June 5, 2025. The video was published on June 7, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $888,780!*

Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

There are many ways to play the AI investment trend. Hardware companies like Nvidia (NASDAQ: NVDA) are powering the training of AI models, suppliers like Taiwan Semiconductor (NYSE: TSM) are building the chips for Nvidia, and software companies like Palantir (NASDAQ: PLTR) are providing platforms to deploy AI for real-world use. I tend to prefer neutral options in the AI space. That way, I can benefit from the general buildout of AI rather than having one company succeed.

While Nvidia is an excellent choice in this realm, so is Super Micro Computer (NASDAQ: SMCI). Super Micro Computer, often called Supermicro, builds server racks and cooling solutions for data centers to house high-powered computing devices like Nvidia's GPUs. Supermicro has seen impressive growth over the past few years, but what's ahead could make investors even more money.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Supermicro's servers offer some advantages over competitors

Server racks are fairly commoditized, so there isn't much to separate one competitor from another. However, one area where a company can make a name for itself is customizability and cooling technology. Supermicro's racks are highly modular, allowing clients of all sizes to find a server rack that fits their workload size and application.

Another advantage of Supermicro's solutions is its direct liquid-cooling (DLC) technology. Traditionally, computing hardware is cooled by moving air across the unit, which isn't the most efficient way to cool these units. Supermicro's DLC technology moves liquid across the surface (contained in tubes), which is a far more efficient way to cool them. Furthermore, because these units don't have to account for airflow, Supermicro's clients can pack more server racks into a given space, which helps decrease building costs. Supermicro estimates that this provides up to 40% energy savings and 80% space savings.

Supermicro also has key partnerships in the industry, most notably with Nvidia. Nvidia's most powerful chip, based on Blackwell architecture, can be placed in servers purpose-built to hold those exact GPUs, helping users squeeze out every last bit of performance from these chips.

Supermicro's latest results weren't the company's best

In Supermicro's third quarter of fiscal year 2025 (ended March 31), sales rose 19% year over year to $4.6 billion. While that's solid growth, the company faces some headwinds due to tariffs. Supermicro also faces some headwinds moving into next quarter, with revenue expected to be about $6 billion at the midpoint of guidance, indicating 13% growth.

However, one area where Supermicro shines is its valuation, as shares can be scooped up for a dirt-cheap level. Supermicro's stock trades for just 15.2 times fiscal year 2026's earnings, which is far cheaper than most of the AI stocks in the market, which commonly trade in the high-20s to the low-30s range.

SMCI PE Ratio (Forward 1y) data by YCharts

As Supermicro figures out tariffs and shifts supply chains around, it could see its growth start to reaccelerate, as AI demand is still massive. Nvidia forecast, using third-party data, that data center capital expenditures would reach $400 billion in 2024 but could rise to $1 trillion by 2028. Should this occur, Supermicro will see its business rapidly expand due to the field in which it's playing.

That kind of growth could send Supermicro's stock soaring if it can capture the bulk of server infrastructure, making Supermicro a potentially fantastic buy to capitalize on the AI arms race that's still heating up.

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

The tech sector has been a market-beating beast in recent years. Tech-heavy exchange-traded funds (ETFs) like the Vanguard Information Technology ETF (NYSEMKT: VGT) and the Invesco QQQ Trust (NASDAQ: QQQ) have delivered annual returns of more than 21% over the last three years. Broad market trackers like the Vanguard S&P 500 ETF (NYSEMKT: VOO) only gained 15.5% per year over the same period. Yes, that's a fantastic return from a historic perspective, but the tech sector offered even stronger gains.

Image source: Getty Images.

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The technology boom has been driven by artificial intelligence (AI) news, starting with the public release of ChatGPT in November 2022. Many leaders in the AI market have soared sky-high, adding fuel to the tech sector's market performance fires, but also making those market darlings a bit expensive.

Fortunately, the market-moving forces left a few top-notch companies behind. I still see several tech stocks with a combination of bright business prospects and modest stock prices. Let's check out a couple of underappreciated bargain-bin tech stocks. This dynamic duo looks ready for a fresh bull run.

1. Criteo

Digital advertising has been a troubled sector since the first signs of an inflation crisis in 2021. Paris-based commerce media specialist Criteo (NASDAQ: CRTO) provides purchase-inspiring ad services to global brands. This focus placed the Parisian company in the epicenter of the inflation-based slowdown -- why invest in lavish marketing campaigns when consumers are pinching pennies and tightening belts?

Criteo's revenues have indeed slumped since then, and so has the stock price. You know what's surging in recent quarters, though? That would be Criteo's free cash flows:

CRTO Free Cash Flow data by YCharts

The cash profits took a temporary dip, but came back stronger, with trailing cash flows reaching an all-time high in May's Q1 2025 report. But Criteo's stock price is down more than 30% in the last quarter, and the shares are trading at the bargain-bin valuation of 11.3 times earnings and 6.6 times free cash flow.

I'm not saying the digital ad market is roaring back to life in the spring of 2025. The political climate may result in another inflation spike, and advertisers are already reducing their ad-spot spending right now. Hence, Criteo's undervalued stock may see more volatility and weakness in the coming months. However, I think the market makers have underestimated Criteo's ability to turn cash profits in a soft market.

The Criteo shares you buy at a discount in this downswing should return to more reasonable valuation ratios someday. At the same time, the company's robust cash generation makes it less vulnerable to short-term financial challenges. You can buy Criteo stock with confidence while it's cheap. This one is poised for great long-term returns, and patience is the greatest Wall Street virtue of them all.

2. Hewlett Packard Enterprise

My next recommendation is more of a household name. Hewlett Packard Enterprise (NYSE: HPE) has been around (in some form) since 1939. As the data center and cloud computing operator of the old HP business, HP Enterprise (aka HPE) plays a serious part in the AI boom.

Indeed, seven out of the 10 most powerful supercomputers today were built by HP Enterprise. Only Chinese rival Lenovo has more systems in the top 500 than HP Enterprise, and nobody can match the total number-crunching performance of this company's ultra-powerful systems. Any company or organization that needs a top-performance system for their AI training and operations is likely to check out HP Enterprise's catalog first.

So I'm talking about an AI powerhouse here. Yet, the stock price has dropped 16% lower year to date while smaller system builders Super Micro Computers (NASDAQ: SMCI) and Dell (NYSE: DELL) are up by 41% and down by just 1%, respectively. Trading at 8.9 times earnings and 14.3 times free cash flow, HP Enterprise looks downright cheap next to these challengers.

HP Enterprise's stock could double or triple in price and still be affordable next to Supermicro or Dell. This could be a great value play on the hardware side of the AI boom.

Should you invest $1,000 in Criteo right now?

Before you buy stock in Criteo, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Criteo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,492!*

Now, it’s worth noting Stock Advisor’s total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 19, 2025

Anders Bylund has positions in Criteo, Vanguard Information Technology ETF, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool recommends Criteo. The Motley Fool has a disclosure policy.

Data centers are being upgraded due to the rising effectiveness of artificial intelligence.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

*Stock prices used were the afternoon prices of May 24, 2025. The video was published on May 26, 2025.

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,492!*

Now, it’s worth noting Stock Advisor’s total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 19, 2025

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Super Micro Computer (NASDAQ: SMCI), more commonly known as Supermicro, went on a wild ride over the past year. The maker of artificial intelligence (AI) servers closed at a record split-adjusted high of $118.81 on March 13, 2024, which marked a 1,020% gain over the previous 12 months.

At the time, investors were impressed by its brisk sales of liquid-cooled AI servers, which ran on Nvidia's high-end data center graphics processing units (GPUs). But today, Supermicro trades at about $47.

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Image source: Getty Images.

Supermicro lost its luster as it struggled with a delayed 10-K filing due to accounting issues, the departure of its auditor, delisting threats, and regulatory probes. Its slowing growth and declining gross margins also indicated it was losing its pricing power against its larger competitors.

The company finally hired a new auditor, filed its overdue 10-K this February, dodged a delisting, and seemed to placate the regulators. But its growth is still cooling off as the macro and competitive headwinds intensify across the evolving AI market. So should investors still buy its stock today?

What happened to Supermicro over the past year?

Supermicro is still an underdog in traditional servers compared to market leaders like Hewlett Packard Enterprise and Dell Technologies. But it carved out a niche with its dedicated AI servers, and Raymond James estimates it now controls about 9% of that growing market. Its close relationship with Nvidia also gave it access to a steady supply of top-tier data center GPUs.

Supermicro's revenue surged 46% in its fiscal 2022 (which ended in June 2022), 37% in fiscal 2023, and 110% in fiscal 2024. Its gross margin expanded from 15.4% in fiscal 2022 to 18% in fiscal 2023 as the AI market heated up.

But its gross margin declined to 14.1% in fiscal 2024 as it faced tougher competition and relied on aggressive pricing strategies to sell more servers. Over the past year, its revenue growth continued to cool off as its gross margins shrank.

Data source: Supermicro. YOY = year-over-year.

Many of its customers postponed their new AI server purchases in anticipation of Nvidia's next-gen Blackwell chips, while supply chain constraints made it harder to fulfill its existing orders. The macro headwinds exacerbated that pressure by forcing many companies to rein in their spending on pricey AI servers. As a result, its inventory levels rose, its pricing power waned, and its gross margins contracted.

What will happen to Supermicro over the next year?

For the fourth quarter of fiscal 2025, Supermicro expects its revenue to grow at a midpoint of 13% year over year as it ramps up its production of Blackwell-powered servers and data center building block solutions -- which bundle its AI servers and software for quick deployments.

For the full year, it expects its revenue to rise 46% to 51%. That outlook is still impressive, but it was scaled back from its prior outlook for 57% to 67% growth.

Analysts expect its revenue to rise 48% in fiscal 2025, 36% in fiscal 2026, and 25% in fiscal 2027. We should take those estimates with a grain of salt, but investors shouldn't expect it to grow as rapidly as it did over the past three years.

That slowdown wouldn't be surprising, since Hewlett Packard Enterprise, Dell, and other major server makers have been rolling out more dedicated AI servers for the booming market. Supermicro established an early mover's advantage in the space, but it doesn't have much of a moat against those rivals.

So is it the right time to buy Supermicro's stock?

Supermicro still faces a lot of macro and competitive challenges, but it also looks like a bargain at 18 times next year's earnings. The AI server market could still have a compound annual growth rate of 34.3% from 2024 to 2030, according to MarketsandMarkets Research, so there could be plenty of room for Supermicro, Hewlett Packard Enterprise, and Dell to grow without trampling one another.

If you believe Supermicro can defend its niche with its high-end liquid-cooled servers, its stock might be worth accumulating as it trades far below its all-time highs. But investors should watch its gross margins closely to see if it can maintain its pricing power in this tough market.

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

The stock market has staged an impressive rebound following a turbulent last few months. The S&P 500 index, which had neared bear market territory when it was down 19% from its highs in April, has quickly recouped most of those losses and is now up 1% year to date as of this writing.

News of efforts by the Trump administration to negotiate bilateral trade deals has eased some fears that the worst-case scenario around various trade wars and economic disruptions may not come to pass. Robust corporate earnings by several companies have further bolstered investor optimism, particularly around the transformative potential of artificial intelligence (AI) as a key driver of economic growth.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Here are three AI stocks that could be a great buy for your portfolio this month.

Image source: Getty Images.

1. Apple: A China trade truce winner

The U.S. and China are suspending retaliatory tariffs for 90 days (while keeping some tariffs) as they pursue a more comprehensive trade deal, and that has lessened the uncertainty around Apple (NASDAQ: AAPL).

The company relies heavily on China as a key market, accounting for nearly 17% of its global sales, and as a pivotal part of its supply chain, where over 80% of iPhones are manufactured. The pause on retaliatory tariffs, coupled with exemptions for electronics, allows Apple to focus on accelerating its AI-driven transformation.

The company is leveraging proprietary machine-learning models into a suite of new AI tools and capabilities through its Apple Intelligence initiative across its ecosystem. In its fiscal second-quarter report (for the period ended March 29), revenue climbed 5% year over year, with continued momentum in high-margin services driving an 8% increase in earnings per share (EPS) to $1.65.

These trends are expected to continue. Anticipation is building for the next-generation iOS 19 and iPhone 17, which are likely to be released after this year. The devices will integrate more AI-optimized features that could boost sales as users upgrade.

With shares of Apple still trading down about 18.5% from their 52-week high, the stock appears to be a compelling buy-the-dip opportunity for investors seeking exposure to the AI revolution.

2. AppLovin: A leader in AI-powered adtech

Share prices of AppLovin (NASDAQ: APP) have soared by 339% over the past year, amid accelerating growth and earnings. The advertising technology (adtech) innovator is capitalizing on the strong demand for its suite of mobile advertising solutions, now powered by artificial intelligence. Its Axon AI engine uses machine learning and advanced algorithms to boost ad engagement and conversions.

In the first quarter (for the period ended March 31), advertising revenue surged by 71% year over year, with management crediting its AI enhancements. Even more impressive was the 149% increase in EPS to $1.67.

AppLovin is expanding into the e-commerce sector, leveraging its Axon platform for hyper-targeted advertising for online retailers, which will use real-time data analytics and generative AI as a new growth driver. The company also intends to enter the video streaming market, a diversification beyond mobile gaming ads.

The stock trades at a forward price-to-earnings ratio (P/E) of 33, a reasonable level given the company's trajectory. These tailwinds, backed by overall solid fundamentals, should keep shares of AppLovin climbing higher.

3. Super Micro Computer: AI infrastructure tailwinds

Super Micro Computer (NASDAQ: SMCI) is a pivotal player in AI infrastructure, supplying rack-scale server systems that integrate power, storage, cooling, and software to support graphics processing unit AI chips from Nvidia.

Despite significant growth in recent years, Supermicro (as it is also known) faced several challenges in 2024, including a probe by the U.S. Department of Justice related to accounting concerns. This was reflected in the stock sell-off, with shares currently down about 62% from their all-time high. However, an independent special committee found no evidence of fraud or misconduct, and the company has since filed its audited 2024 annual report. By this measure, Supermicro is emerging as a comeback story.

The company excels in direct liquid cooling technology, which enhances energy efficiency for data-intensive AI workloads. Supermicro projects that over 30% of new data centers globally will adopt liquid-cooled infrastructure in 2025, signaling a major growth opportunity.

With Wall Street estimates for 2025 annual revenue growth of 48% and the stock trading at a forward P/E of just 22, Supermicro offers a compelling mix of high growth and value, making it well-positioned to reward shareholders over the long run.

Should you invest $1,000 in Apple right now?

Before you buy stock in Apple, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin, Apple, and Nvidia. The Motley Fool has a disclosure policy.

After seeing its shares tumble when the company pre-announced disappointing fiscal third-quarter results, Super Micro Computer (NASDAQ: SMCI) stock was once again falling after the company reported its full results and issued weak guidance.

It's been a crazy 2025 for the stock, which finds itself near breakeven on the year. However, it's also down nearly 50% since mid-February.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The stock initially posted a huge rally after Supermicro was able to file its annual reports, potentially ending a saga related to its accounting. A short-seller initially accused Supermicro of manipulating its accounting, and the company subsequently delaying its annual report and its auditor resigning only added fuel to the fire. The fact that the Securities and Exchange Commission (SEC) had fined the company a few years earlier over accounting issues also didn't help its image.

Even as the stock rallied, though, underlying issues have been popping up with Supermicro's operational results. This is not the first time the company has lowered its fiscal-year guidance. It's been a consistent theme. In November, it slashed its fiscal first-quarter revenue guidance to a range of $5.9 billion to $6 billion from earlier guidance of between $6 billion and $7 billion. In February, meanwhile, it also announced that its fiscal Q2 revenue would fall short of expectations.

In addition to its struggles forecasting revenue, Supermicro has also seen gross margin pressure. This began in its fiscal Q4 ending in June 2024, when its gross margin sank to 11.3% from 17% a year earlier. The company said that this was because it reduced prices in order to secure new design wins. The lower gross margins are, the more difficult it is to turn revenue into profits.

Problems persist

With its fiscal Q3 report and guidance, Supermicro's past issues show no signs of letting up.

For the quarter, its revenue rose 19% to $4.6 billion, but that was well short of its earlier guidance for sales to range between $5 billion and $6 billion. Meanwhile, its fiscal Q4 guidance calling for sales of $5.6 billion to $6.4 billion also fell well short of the $6.82 billion analyst consensus, as compiled by LSEG.

At the time of its pre-announcement, Supermicro said customers were delaying platform decisions, which would move sales into its fiscal Q4. On its conference call, the company expanded on this, noting that it was due to customers waiting to evaluate the difference between Nvidia's Hopper and Blackwell graphics processing units (GPUs).

However, with its fiscal Q4 forecast far below estimates, it appears not enough of these sales were pushed into its June quarter. It now expects these commitments to come in the June and September quarters. It also cited tariffs and current macroenvironment uncertainty for its cautious outlook.

Gross margins also remained an issue, falling to 9.6% in the quarter. As a hardware integrator, Supermicro operates in a low-margin business. While it adds value by helping customers customize their server setups, the industry is highly competitive, with limited room for differentiation. Meanwhile, much of its revenue comes from passing through expensive components like GPUs.

However, the big drop in gross margins over the past year-and-a-half has been concerning. Meanwhile, it forecast gross margins to be around 10% in fiscal Q4, showing little sign of a recovery in the near term. It said its latest margin pressure stems from the GPU transition, with more price competition surrounding older platforms. It also noted pressure coming from tariffs.

Image source: Getty Images.

Should investors buy the dip in the stock?

Brushing aside the accounting accusations and everything that went along with them, Supermicro is a company that has had its struggles. Revenue growth expectations have consistently been pushed lower over the past year, while already low gross margins have also come down considerably.

Now the stock appears cheap, with a forward price-to-earnings ratio (P/E) of under 9x based on fiscal-year 2026 analyst estimates. However, it is still to be seen if these estimates need to come down, as the company did not give fiscal 2026 guidance.

Supermicro should benefit from increased artificial intelligence (AI) infrastructure spending. However, it is in a low-margin, low-moat business, and the company has struggled. This is far different than a company like Nvidia that has gross margins above 70% and a wide technological moat.

Overall, I think the best way to play AI infrastructure is with the stocks of companies that have strong technology and attractive margin profiles. That description just does not fit Supermicro.

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $714,958!*

Now, it’s worth noting Stock Advisor’s total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

In today's video, I discuss recent updates affecting Nvidia (NASDAQ: NVDA). To learn more, check out the short video, consider subscribing, and click the special offer link below.

*Stock prices used were the after-market prices of May 2, 2025. The video was published on May 4, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $296,928!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $38,933!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $623,685!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of May 5, 2025

Jose Najarro has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

In today's video, I discuss what Super Micro (NASDAQ: SMCI), Unity Software (NYSE: U), and Astera Labs (NASDAQ: ALAB) stock investors should know before earnings. To learn more, check out the short video, consider subscribing, and click the special offer link below.

*Stock prices used were the after-market prices of May 2, 2025. The video was published on May 4, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*

Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Jose Najarro has positions in Unity Software. The Motley Fool has positions in and recommends Unity Software. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Wall Street has seen significant volatility in 2025, triggered by fears of a potential recession and new rounds of tariff wars. However, this market turmoil can also offer an opportunity to quietly compound your long-term wealth.

If you look beyond the daily panic, you will notice a few companies that are demonstrating healthy top-line growth while maintaining substantial competitive moats in their respective markets. Here's why Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Super Micro Computer (NASDAQ: SMCI), and ServiceNow (NYSE: NOW) are worth buying and holding for the long run.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Nvidia

At the time of this writing, shares of Nvidia are down nearly 31% from their January peak. Yet the business has not weakened. It is still going strong.

The company's recently launched Blackwell chips represent a dramatic leap in artificial intelligence (AI) computing capabilities. Compared to previous Hopper architecture chips, they deliver impressive performance at a much lower cost when handling large inferencing AI workloads. This means faster results and lower client costs, translating into high enterprise demand. Blackwell has already generated over $11 billion in revenue during the most recent quarter.

Nvidia has also evolved from a gaming-focused chip player to a full-stack AI infrastructure giant, with a robust software ecosystem and networking infrastructure. The company is also focusing on upcoming AI opportunities in areas like agentic AI, physical AI, and autonomous driving. Not surprisingly, Bank of America analysts see the company's addressable AI infrastructure market reach at around $2 trillion. Nvidia is still in the early stages of capitalizing on this tremendous opportunity.

2. Microsoft

Microsoft has also emerged as a dominant AI player and is already monetizing its AI assets.

Microsoft's primary profit driver, the Azure cloud computing platform, continues to be a major growth catalyst. Recently, however, Azure AI infrastructure services have been pivotal in attracting developers, businesses, and enterprises to the Azure ecosystem.

The company's AI-powered Copilot assistant, integrated across several of its flagship offerings, is also a very promising AI initiative. Copilot is helping attract new customers and increase usage frequency among large enterprises. The company is also at the forefront of the next-generation quantum computing technology, with initiatives such as the Majorana 1 chip and advances in quantum virtualization software.

Microsoft also differentiates itself from several of its peers based on its robust financial structure. The company's mostly subscription-based diversified business model is a significant strength in the current volatile environment.

And here's where it gets interesting: Even with all this momentum, the company is trading at 25.9 times forward earnings -- below its five-year average of 33 times. That disconnect may not last long. But it offers a smart opportunity to pick up this stock now.

3. Super Micro Computer

Super Micro Computer's leading position in the AI server market and its dominance in liquid cooling technology have made it a significant beneficiary of the explosive demand in the global AI infrastructure market, estimated to be over $200 billion by 2028.

Super Micro Computer lowered its guidance for fiscal 2025 but remains confident about reaching $40 billion in revenues in fiscal 2026, implying around 65% year-over-year growth from its current-year forecasts. The company expects strong demand for air-cooled and liquid-cooled AI configurations, equipped with Nvidia's Blackwell GPUs. Super Micro Computer is also working on increasing manufacturing capacity at its U.S., Taiwan, and Malaysia sites. Since utilization is just 55% in the U.S., 60% in Taiwan, and only 1% in Malaysia, there is a lot of room to grow.

Although the company faces multiple challenges, including margin pressures, intensifying competition, and damaged investor trust due to historical compliance and governance issues, there is still much to like about this stock.

4. ServiceNow

ServiceNow's cloud-based digital workflow automation platform, known as the Now platform, has positioned the company as a key beneficiary of the growing adoption of digitization across enterprises. The company's software solutions are used to automate and streamline technology, CRM, industry, core business, and creator workflows across industry verticals such as healthcare, manufacturing, and the U.S. public sector. Thanks to the diversified business model, the company is not overtly reliant on any particular industry or workflow.

ServiceNow has delivered impressive financial performance, with subscription revenues rising 20% year over year and current remaining performance obligations (the current portion of future revenue backlog) growing 22% year over year in the recent quarter (first quarter fiscal 2025 ending March 31, 2025).

The company's AI initiatives are also gaining momentum. This is evident since the number of ServiceNow Pro Plus deals (which offer advanced generative AI capabilities integrated into the Now Assist suite) more than quadrupled year over year in the first quarter. The company's next-generation AI-optimized database, RaptorDB, also gained traction and won five deals over $1 million. Finally, the company's planned acquisitions, Moveworks and Logik.ai, are further expected to strengthen its AI capabilities.

ServiceNow is trading at a forward P/E of 47.8, which is not cheap. However, the stock seems a worthwhile buy now considering its robust fundamentals and the valuation, which is dramatically lower than its five-year average of 235.2 times.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $287,877!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $39,678!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $594,046!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of April 28, 2025

Bank of America is an advertising partner of Motley Fool Money. Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, Microsoft, Nvidia, and ServiceNow. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Super Micro Computer (NASDAQ: SMCI) stock is rocketing higher Wednesday in response to multiple positive catalysts. The company's share price was up 10.2% as of 2:45 p.m. ET. At the same point in the session, the S&P 500 had risen 1.8%, and the Nasdaq Composite was up 2.9%.

Supermicro's valuation is climbing today thanks to a combination of encouraging developments on the macroeconomic front. The stock is also seeing bullish momentum in conjunction with the announcement of a new server and expanded generative artificial intelligence (AI) partnership with Fujitsu.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Stocks rise as investors bet on brightening macroeconomic picture

Recent comments from President Donald Trump and other leaders in the administration point to a significant pivot in trade policy that could help lower tariffs and alleviate concerns among investors. According to a report from Reuters, the administration could lower tariffs on Chinese goods to between 50% and 65% -- a big pullback from the 145% import tax currently applied to most goods from the country. In comments today, Trump also said that he didn't intend to try to fire Federal Reserve Chair Jerome Powell.

Supermicro unveils new server and deepened Fujitsu partnership

Fujitsu published a press release today announcing that it was expanding its collaboration with Supermicro. The two companies also announced the launch of the new PRIMERGY GX2570 M8s server from Supermicro, which pairs a high-performance graphics processing unit (GPU) with liquid-cooling technologies and related support software and services. In July, Fujitsu will begin using the new server in conjunction with its Takane large language model (LLM) to provide generative AI services to enterprises. The development suggests that Supermicro should continue to see strong demand for its server products tied to generative AI and helps support a bullish case for the stock.

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The hot artificial intelligence sector propelled many tech stocks upward in the past couple of years, among them server manufacturer Super Micro Computer (NASDAQ: SMCI), commonly known as Supermicro. Its shares soared to a split-adjusted 52-week high of $101.40 last June.

But a series of bad news battered the stock. Shares plummeted to a 52-week low of $17.25 by November. Since then, the company has put this tumultuous period behind it, and its share price has risen.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Even so, the stock is down 66% over the past 12 months through April 17. Does this mean its shares are buying up? Or do reasons remain to steer clear? Let's dig into the company to find out.

Super Micro Computer's turbulent times

Supermicro's stock price drop this past year began in earnest when now-defunct short-seller Hindenburg Research accused the company of accounting manipulation in August. Then, management delayed filing its annual earnings report for the 2024 fiscal year, ended June 30. This was followed by its auditor resigning after raising concerns about the company's financial reporting.

As each of these dominoes fell, so did Supermicro's share price. The company risked having its stock delisted at that point, which already had happened once before, in 2018.

Management steadily addressed the issues. It gained a new auditor, accounting firm BDO. In December, a special committee investigating Supermicro's finances confirmed that the company's statements were accurate. In February, the company finally filed its annual report, along with two subsequent quarterly earnings statements.

With its challenges behind it, here's how Supermicro's business fared. In fiscal 2024, sales surged an impressive 110% over the prior year to $15 billion. The growth was due to Supermicro's server and data storage solutions, which were popular products to meet the hardware demands of AI systems. They contributed 95% of 2024 revenue.

After a successful fiscal 2024, that success extended into the first half of the company's 2025 fiscal year, ended Dec. 31. Revenue rose 100% once again to $11.6 billion, up from the previous year's $5.8 billion.

Super Micro Computer's era of growth

Supermicro's splendid sales gains enabled the company to end the first half of fiscal 2025 with net income of $744.9 million, up from $453 million in the prior year. As a result, diluted earnings per share (EPS) rose to $1.17 from $0.79 in the period.

The company's outstanding results so far in fiscal 2025 are a continuation of a multiyear stretch of sales and EPS growth. This period kicked off when businesses began investing in generative AI around the time OpenAI's ChatGPT debuted in 2022.

Data by YCharts; TTM = trailing 12 months..

However, Supermicro's streak of success is encountering a bump in the road. The company forecast fiscal 2025's full-year revenue to come in between $23.5 billion to $25 billion. While that's still significant double-digit growth over fiscal 2024's $15 billion, it's not the outsize sales jump seen in the last fiscal year.

The reason is that it can't keep up with customer demand. CEO Charles Liang said, "While most key components are ramping at full speed, it will take some time to fulfill our current AI solution backlogs."

The company has a new factory in Malaysia, but it will take time to get up to full capacity. As a result, Supermicro delivered a conservative revenue estimate for fiscal 2025.

Evaluating whether to buy Super Micro Computer stock

Supermicro's backlog is good news for investors focused on the long haul. As the company builds up more capacity to churn out products, it will be positioned to see increased sales growth.

In the short term, however, its shares are seeing a depressed valuation. Here's a look at Supermicro's price-to-earnings ratio (P/E), a way to tell how much investors are willing to pay for a dollar's worth of earnings.

Data by YCharts; PE = price to earnings..

Supermicro's P/E spiked in February after the company filed earnings reports that showed strong results. Since then, recent stock market volatility amid President Donald Trump's tariff plans have pushed down Supermicro's stock valuation.

Although it's not at the lowest point reached during the company's recent controversy, at the time of this writing, Supermicro's P/E ratio is lower than before the troubles began, suggesting shares are at an attractive price.

This, combined with strong sales and EPS growth and the prospect of future revenue expansion as it increases output, makes Supermicro a worthwhile long-term investment in my view. The compelling valuation, in particular, means now could be a good time to pick up shares.

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,771!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $593,970!*

Now, it’s worth noting Stock Advisor’s total average return is 781% — a market-crushing outperformance compared to 149% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Robert Izquierdo has positions in Super Micro Computer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Despite the extreme stock market volatility at the start of 2025, the artificial intelligence (AI) revolution is moving full steam ahead. Advances in machine learning and automation technology are rapidly reshaping the global economy, ushering in a new era of business productivity and human creativity.

At the core of this transformation are high-performance data centers, which play a critical role in the AI ecosystem. Two leading companies in this space are Super Micro Computer (NASDAQ: SMCI) and Dell Technologies (NYSE: DELL), which supply the essential server equipment and storage hardware to run AI workloads.

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Let's discuss whether Supermicro (as it is commonly known) or Dell Technologies is the better AI stock to buy right now.

Image source: Getty Images.

The case for Supermicro

Supermicro presents a remarkable growth story as an early winner in the AI boom. Even with the stock down 66% from its 52-week high at the time of writing, longtime shareholders have still enjoyed a 1,470% return over the past five years.

The company capitalizes on the demand for specialized rack-scale computer systems, which integrate power, storage, cooling, and software components to support graphics processing unit (GPU)-based AI chips from Nvidia and Advanced Micro Devices. Its technical leadership in next-generation direct-liquid cooling (DLC) technology is a key advantage, offering significant energy-efficiency gains for power-intensive data centers. Additionally, the company's U.S. manufacturing presence has become increasingly important amid trade tensions as businesses seek to secure their supply chains.

Supermicro expects revenue to reach $23.5 billion to $25.0 billion in fiscal 2025, a 62% year-over-year increase. Looking ahead, the company sees a path to $40 billion in revenue by next year, driven by growing market adoption of its DLC technology and expanding production capacity. This momentum is accompanied by improving profitability, with Wall Street analysts predicting a 17% increase in adjusted earnings per share (EPS) this year to $2.59.

On the other hand, Supermicro's success has not been without challenges. In 2024, the company faced a headline-making accounting investigation by the U.S. Department of Justice (DOJ) while its auditor resigned due to governance concerns. Favorably, the company has since cleared up some of those issues, releasing an audited 2024 annual report, while an independent special committee cleared it of misconduct allegations. Uncertainties remain, including possible DOJ sanctions, yet the attraction of Supermicro now as an investment is in this comeback story.

Investors who believe Supermicro's growth trajectory is back on track have plenty of reasons to buy shares of this AI leader.

The case for Dell Technologies

Dell Technologies' strength lies in its diversification. Generating $96 billion in revenue in fiscal 2025 (ended Jan. 31), the company is 4 times larger than Supermicro. It benefits from a broad product portfolio across enterprise-grade solutions and a consumer devices franchise.

This year, its AI-optimized server systems powering data centers have driven record earnings. For the last reported fiscal 2025, revenue increased 8% year over year, with adjusted EPS rising 10% to $8.14. Notably, the AI servers and networking segment revenue grew 54% annually, nearly matching Supermicro's momentum.

While sluggish personal computer demand has weighed on Dell's firmwide results, this segment could have a silver lining. Dell's strategic emphasis on AI-powered PCs for businesses and consumers positions it to leverage an anticipated industry-wide replacement cycle for AI-ready devices into the next decade.

Perhaps the strongest case for Dell as the better AI stock over Supermicro is its valuation. Shares trade at a forward price-to-earnings (P/E) ratio of 9.2, a steep discount to Supermicro's earnings multiple of 14.3. One interpretation is that Dell stock is undervalued, with shareholders also receiving a 2.1% dividend yield supported by its high-quality free cash flow.

Data by YCharts. PE Ratio = price-to-earnings ratio.

A tough decision between two industry leaders

I'll give Supermicro the edge as the better AI stock based on its more specialized focus on AI infrastructure hardware and leadership in liquid cooling solutions. While the stock is riskier than Dell's, its stronger growth outlook may offer more upside potential if it can overcome regulatory uncertainties. If investors recognize that the delicate macroeconomic environment is a risk to consider, Supermicro stock is a great option for investors to capture tech and AI exposure in a diversified portfolio.

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.