Super Micro Computer (NASDAQ: SMCI) stock made big gains in Monday’s trading. The company’s share price closed out the daily session up 9.6%, according to data from S&P Global Market Intelligence.
Super Micro Computer gained ground in conjunction with favorable macroeconomic analysis, bullish coverage from analysts on companies in the memory-chip industry, and recent announcements from Nvidia at the 2024 Consumer Electronics Show (CES). With the added boost from today’s gains, Super Micro Computer stock is now up roughly 279% over last year.
Macroanalysis is boosting Super Micro stock
Multiple reports emerged today suggesting that Wall Street analysts expect the Federal Reserve to pursue a policy of substantial rate cuts over the next couple of years. While there is some variation in terms of the timeline and extent to which rate cuts are expected to occur, the general takeaway from recent analyst writings is that Fed policy is projected to move in a direction that is more favorable for growth-dependent tech stocks.
Business-specific trends are also bullish
In addition to indications that the macrobackdrop for artificial intelligence (AI) growth stocks is improving, Citigroup‘s analysts released a bullish report on memory-chip stocks. The report cites surging demand for AI services as a core performance catalyst for top memory-chip players. While Super Micro Computer is more focused on server solutions, increased AI-driven demand for memory chips is likely to coincide with growth for the company.
Super Micro Computer stock is likely also getting a lift from recent announcements from Nvidia at this year’s Consumer Electronics Show. Nvidia is the leading player in high-performance graphics processing units (GPUs). The recent announcements at CES don’t necessarily indicate direct catalysts for Super Micro Computer’s business, but they do reflect positively on general trends that bode well for the company.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Super Micro Computer. The Motley Fool has a disclosure policy.
Why Super Micro Computer Stock Soared Today was originally published by The Motley Fool
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