We recently compiled a list of the 12 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against the other trending AI stocks.
AI companies in Europe are competing with American counterparts for a larger slice of the AI cake in Asia and the Middle East. For example, French AI firm LightOn recently revealed plans to expand in the Middle East, targeting sectors such as banking, defense, and high-tech which require their data to be protected on local servers. According to a report by news agency Reuters, Laurent Daudet, the CEO of the firm, noted that banking, insurance, high-tech, defense, and healthcare were prime targets for the custom AI models from LightOn.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The report further highlights that Saudi Arabia, the United Arab Emirates and neighbouring countries were among those being looked at by LightOn. The AI firms just recently debuted on the stock market, becoming the first listed genAI company on the Euronext Growth exchange. The demand for LightOn products is growing. Per Orange AI Chief Steve Jarrett, customers want a French-trusted AI solution.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of technicians in a server room, testing and managing the newest server solutions.
Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 33
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. On December 3, Wedbush maintained a Neutral rating on the stock with a price target of $24. In an investor note, the advisory underlined that findings from Supermicro’s special committee were a net positive for the company. Wedbush presumes Supermicro’s new auditor, BDO, was apprised of the findings as well as the suggested solution and is okay with the suggested course of action. Assuming this is the case, with no changes to financials, there should not be any impediment to Supermicro eventually filing its delayed financials within the course of a typical extension provided by the Nasdaq, the advisory told investors in a research note. As such, Wedbush believes the risk of a delisting appears to have been minimized.
Overall SMCI ranks 12th on our list of the trending AI stocks on latest news and ratings. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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 the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.