In This Article:
We recently published a list of 10 Firms Crushing the Market. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against other firms that are crushing the market.
The stock market finished the trading day on a mixed note, as investors continued to digest April inflation figures, which came out lower than expected.
On Tuesday, the Labor Department reported that the Consumer Price Index for April rose by only 0.2 percent last month, bringing the annual inflation rate to 2.3 percent, its lowest annual rate since February 2021.
Among Wall Street’s main indices, only the S&P 500 and the tech-heavy Nasdaq registered gains, by 0.72 percent and 1.61 percent, respectively. The Dow Jones, on the other hand, was down by 0.64 percent.
Beyond the major indices, 10 companies finished the session with strong gains amid a flurry of positive developments, including ratings upgrades and impressive corporate earnings, among others.
In this article, we name Tuesday’s 10 top performers and detail the reasons behind their rally.
To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.
A team of technicians in a server room, testing and managing the newest server solutions.
Super Micro Computer, Inc. (NASDAQ:SMCI)
Super Micro Computer surged by 16.02 percent on Tuesday to end at $38.89 apiece after investment firm Raymond James Financial Inc. gave the company a bullish outlook and a higher price target.
On Monday, Raymond James said it initiated coverage of Super Micro Computer, Inc. (NASDAQ:SMCI) and gave the latter an “outperform” rating with a price target of $41, an upside of 5.42 percent from the company’s latest closing price.
According to the investment firm, Super Micro Computer, Inc. (NASDAQ:SMCI) carved out a solid spot in the AI race, with a 9 percent market share in a $145-billion market.
In the third quarter ending March 31, 2025, Super Micro Computer, Inc. (NASDAQ:SMCI) recorded a 73-percent drop in net income at $108 million versus $402 million in the same period last year.
Net sales, however, increased by 19 percent to $4.599 billion from $3.850 billion year-on-year.
Overall, SMCI ranks 6th on our list of firms that are crushing the market. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that 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.