Quietly Surging US AI Beneficiary Companies... More Disruptive Returns Than Nvidia

Super Micro Computer Boasts 700% Profitability
Key Manufacturer of Data Center Cooling System Components

Riding the artificial intelligence (AI) boom, Bloomberg reported on the 6th (local time) that there is a U.S. company boasting a 700% return, surpassing the 'blue chip' Nvidia.

The protagonist is server manufacturer Super Micro Computer (hereinafter Super Micro). When AI companies purchase AI chips to operate data centers, they must build cooling system functions, and Super Micro is the key company producing these products.

Super Micro's stock price surged 250% last year on the New York Stock Exchange and has more than doubled this year. Since the end of 2022, it has risen 700%. Its market capitalization has also increased more than eightfold to $37 billion (about 49 trillion KRW) compared to the end of 2022. The company's founder and CEO, Charles Liang, who is originally from Taiwan, has seen his assets grow to $5.2 billion (about 6.9 trillion KRW).

Super Micro's stock price soared because there is no need to worry about the ultimate winner of the AI boom. The global movement to secure AI sovereignty is expected to increase product sales accordingly. As a partner of Nvidia, the company's liquid cooling system is a product that reduces the massive heat generated when operating data centers for AI, and it is regarded as an essential item for next-generation AI. The preliminary quarterly earnings announced last month far exceeded market expectations, further boosting the stock price.

The company's sales forecast has also been revised upward. According to Bloomberg's aggregation, Super Micro's total sales this year are expected to more than double.

Although the stock price has surged in a short period, Wall Street evaluates that there is room for further growth because the price-to-earnings ratio (P/E) is cheaper than Nvidia's. Super Micro's P/E is 26 times, much lower than Nvidia's 33 times, and similar to the Nasdaq 100 average (25.6 times).

J. Demis Jean-Jacques, founder and Chief Investment Officer (CIO) of Ocean Park Investment, said, "Considering how solid and secure this company's cash flow is, although it has already shown an upward trend, the stock price is still attractive."

This content was produced with the assistance of AI translation services.