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Heavily shorted AI stock is rapidly climbing the Fortune 500 originally appeared on TheStreet.
Economic uncertainty in the U.S. may be high right now, and it may be rising even further, but some things aren’t changing.
One constant is Walmart’s dominance on the Fortune 500 list, a ranking of companies based on their full-year revenue for the previous year. The retail giant continued to maintain its place at the top of the list for the 13th consecutive year, demonstrating an ability to rise through both good times and bad.
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However, the past year has brought new challenges for other companies, specifically those in the tech sector. Even the artificial intelligence (AI) field, which saw demand boom after the launch of ChatGPT in 2022, faced mass layoffs and trade complications from markets such as China.
While even Nvidia, (NVDA) the market’s undisputed leader, struggled against high volatility, a surprising AI stock, mostly popular among short sellers, surged on the Fortune 500 in 2024.
While tech leaders struggled, a little-known company shot up
Most investors likely don’t pay much attention to the lower parts of the Fortune 500. The list is long, and the same industry-leading companies tend to hover around the top 10, though even Amazon remains unable to unseat Walmart.
Related: Tempus AI hits back at scathing short report
The current top 10 rankings only include three tech companies, illustrating just how difficult a time the sector has had. But while big tech companies struggled in 2024, IT hardware producer Super Micro Computer (SMCI) advanced 206 spots on the list, a feat that many experts likely weren’t expecting.
Known for its work designing and producing IT hardware such as storage systems, servers, and networking equipment, Super Micro Computer isn’t an unknown company by any means. But last year, it made plenty of headlines for negative reasons, including accusations of accounting manipulation from short-seller Hindenburg Research.
Since then, SMCI stock has been extremely volatile, but short interest in the company has surged. Data from Fintel shows that it currency accounts for almost 21% of the stock’s float, considered an extremely high number. Earlier this year, it ranked among the most-shorted tech stocks, according to market research firm Hazeltree.
Despite rising short interest, Super Micro Computer reported strong growth throughout the year, likely fueling its rise on the Fortune 500. Its revenue came in at just under $15 billion, a year-over-year (YOY) increase of 100%, and one-year profit growth reached $1.15 billion.