Super Micro Computer surpasses Nvidia share price, one of the “Magnificent Seven”

The so-called “Magnificent Seven” – Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia and Tesla – have great performance in the markets and the rise of artificial intelligence (AI) has increased their progress.

Although those seven get most of the attention, another company surpasses the largest in the world in value.

This is Super Micro Computer, which was founded in Silicon Valley in 1993 and does business under the shortened name Supermicro, it is not as well known but it is more profitable. Its shares have seen astonishing growth in the last year, increasing 10-fold: from US$95.5 to US$1,000.

Until very recently, Supermicro had gone almost unnoticed. But in March it began trading on the S&P 500, which gives it greater visibility and incorporates it into the portfolio of investors linked to this index. Consequently, the company has entered as a “blue chip” – a well-established and financially sound company that has been operating for several years and boasts stable profits, usually with dividends for shareholders – replacing Whirlpool, making it one of the most profitable in the index.

The rise on the stock market of Supermicro, specialized in data centers and infrastructure for artificial intelligence, has been notable. Its share price has already surpassed that of Nvidia.

The company, founded in 1993 by Charles Liang, is dedicated to the sale of servers and data storage equipment. As a strategy, it constantly innovates its products and collaborates with prominent chip companies such as Nvidia itself, Arm, Intel or Broadcom.

Although Supermicro’s numbers are not comparable to Nvidia’s in terms of business and capitalization (it has a little more than US$7 billion in profits, while Nvidia exceeds US$60 billion), investor interest in the field of intelligence artificial and the less restrictive monetary horizon drive its strong growth in 2024.