We recently published a list of 10 Overlooked Tech Stocks to Buy Now. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against other overlooked tech stocks to buy now.
After overcoming major macroeconomic challenges, the IT sector has started 2025 with fresh vigor. The tech sector is now ready for a resurgence after a period of instability characterized by high inflation, rising interest rates, and worldwide unpredictability. The sector is expected to be “healthy” or “very healthy” in 2025, according to 62% of tech executives polled by Deloitte. Global IT spending is expected to increase by 9.3%, driven mostly by double-digit growth in software and data center investments. As companies move AI initiatives from pilot projects to full-scale production deployments, analysts anticipate that generative AI, cybersecurity, and cloud services will continue to be important growth drivers.
The rate of layoffs dropped significantly in 2024, indicating growing stability. But new difficulties have surfaced, especially in relation to geopolitical tensions and regulatory barriers. The world economy is already feeling the effects of President Trump’s expansive tariff plans, which include additional charges on major tech manufacturing countries like Taiwan, India, and Vietnam that range from 26% to 49%. Although imports of semiconductors, which are essential for the development of AI, have been temporarily exempted, tech companies that rely on international supply chains face new risks as a result of the unstable trade policy climate.
Meanwhile, generative AI is proving to be a double-edged sword. While it is projected to contribute 21% to U.S. GDP by 2030, as reported by the World Economic Forum, there are growing concerns about the technology displacing millions of jobs, particularly administrative roles. As the World Economic Forum highlights, the solution lies not in halting AI innovation but fostering “Authentic Intelligence”—an approach emphasizing the collaboration of human critical thinking with AI’s capabilities to ensure inclusive economic growth.
Additionally, cybersecurity has become a significant priority on the strategic agenda. As the use of AI increases, so does the attack surface available to hackers. By 2028, it’s expected that global spending on cybersecurity will exceed $200 billion, as businesses emphasize bolstering their defenses. However, only 24% of existing gen AI projects are thought to be sufficiently secure, indicating that trust is still a major obstacle to the widespread use of AI.
In summary, despite the fact that 2025 holds great promise for the IT industry due to advancements in generative AI, cloud migration, and robust IT investment, businesses still have to deal with a complex web of ethical, geopolitical, and legal issues. Successful companies will strike a balance between daring technological innovation, careful risk management, strategic supply chain diversity, and a dedication to upholding stakeholder and customer confidence.
Against this dynamic backdrop, let’s look at 10 Overlooked Tech Stocks to Buy Now, which are not only ready to capitalize on upcoming opportunities but may also provide attractive upside potential for investors seeking beyond the conventional mega-cap giants.
Methodology
To find overlooked tech stocks, we started by looking for companies with a market capitalization greater than $5 billion, ensuring a concentration on financially strong, large-cap enterprises. We chose stocks from this category that had a price-to-earnings (P/E) ratio of less than 15, using the P/E ratio as a conventional valuation indicator to highlight relatively affordable earnings-driven stocks. We then evaluated these firms based on hedge fund sentiment, utilizing data from Insider Monkey’s fourth quarter 2024 report. Finally, we chose the ten companies with the least number of hedge fund investors to represent our list of Overlooked Tech Stocks to Buy Now.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Super Micro Computer, Inc. (SMCI): Among Overlooked Tech Stocks to Buy Now
A team of technicians in a server room, testing and managing the newest server solutions.
Super Micro Computer, Inc. (NASDAQ:SMCI) is a global pioneer in high-performance server and storage systems, serving markets such as enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing. Super Micro, based in San Jose, California, develops IT solutions that include modular servers, networking devices, storage systems, and server management software.
The company is one of the most intriguing, overlooked tech stocks today, capitalizing on the enormous AI demand wave. Super Micro predicts revenue between $5.6 billion and $5.7 billion in the second quarter of fiscal 2025, representing a staggering 54% rise year-over-year. Non-GAAP earnings per share are expected to range between $0.58 and $0.60, with a non-GAAP operating margin of roughly 7.9%. Although gross margins fell marginally to 11.9% owing to product and client mix, Supermicro is still focused on scaling new AI-optimized platforms.
Notably, Super Micro Computer, Inc. (NASDAQ:SMCI) has started shipping NVIDIA Blackwell products, such as the B200 HGX systems and GB200 NVL72 racks. The company is growing its lead in liquid-cooled data center systems, with liquid cooling likely to be used in more than 30% of new data centers within a year. Its Datacenter Building Block Solutions provide end-to-end infrastructure, enabling customers to reduce total cost of ownership by up to 40%.
Supermicro is rapidly expanding its manufacturing footprint, with new facilities in Malaysia, Taiwan, Europe, and increased production in Silicon Valley. It obtained $700 million in convertible senior notes to support its aggressive growth efforts.
Super Micro Computer, Inc. (NASDAQ:SMCI) has teamed with SteelDome to develop sophisticated virtualization and software-defined storage solutions aimed at business and edge deployments, therefore boosting its AI and hyperconverged products.
Despite its pace, Super Micro Computer, Inc. (NASDAQ:SMCI) is an overlooked tech stock, providing investors with a unique opportunity to invest in a company predicting revenue of $23.5 billion to $25 billion in 2025, and an aggressive $40 billion revenue target by 2026.
Overall, SMCI ranks 6th on our list of overlooked tech stocks to buy now. While we acknowledge the potential of SMCI, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SMCI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
