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Super Micro Computer’s 700% Gain Eclipses Nvidia

Super Micro Computer Inc. has more than doubled this year, building on last year’s surge of about 250% and easily eclipsing the returns of other AI-related shares, like Nvidia, Advanced Micro Devices Inc. and Microsoft Corp.

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Bloomberg chart: Supermicro

It’s now up some 700% since the end of 2022 amid robust demand for its servers, the infrastructure for the chips that in turn run artificial intelligence applications.

The stock jumped 14% Monday, cementing its position as the top performer this year on the S&P Midcap 400 Index. It was little changed Tuesday.

Charles Liang, Super Micro’s co-founder and chief executive officer, has seen his wealth surge alongside the stock. Monday’s rally boosted his fortune to $5.2 billion, according to the Bloomberg Billionaires Index. That’s still a long way from Nvidia’s Jensen Huang, who’s worth $61.2 billion, making him the 22nd-richest person in the world.

Super Micro’s servers are the hardware that’s used to run AI chips, from Nvidia or other producers. Customers can use thousands of these chips, generating tremendous heat.

California-based Super Micro now has a market capitalization of around $37 billion, more than eight times its size at the end of 2022. It’s also bigger than half the members of the S&P 500 Index, even though it belongs to a measure of mid-cap stocks. Granted, it’s still a far cry from Nvidia, which tips the scales at roughly $1.7 trillion.


Image: AI Chips