Super Micro Has Outrun Nvidia This Year: What's Powering AI Server Maker's Premarket Rally Today

Shares of Super Micro Computer, Inc. SMCI are rising in premarket trading on Thursday amid a positive catalyst.

Tesla CEO Elon Musk, who has set up a separate AI venture going by the name xAI.com, said in a post on X that computer and peripherals maker Dell Technologies, Inc. DELL is “assembling half of the racks that are going into the supercomputer that xAI is building.”

When one of his followers probed as to which company would be doing the other half, the billionaire confirmed it as Super Micro Computer.

Super Micro Computer, which was recently added to the S&P 500 Index, has been the best-performing stock among the index components. As opposed to AI stalwart Nvidia’s 223.65% year-to-date gain, Super Micro Computer has gained 173.78%.

The San Jose, California-based AI server manufacturer’s shares have been on a tear since the start of the AI revolution in early 2023. Following its quarterly results in early May, fund manager Louis Navellier said the company is dominating liquid-cooled AI chips in data centers, which are getting faster all the time. “The stock is a great pullback on any dip and remains an outstanding buy,” he said.

In premarket, the stock climbed 3.27% to $950.05, according to Benzinga Pro data.

Image via Shutterstock

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