Yahoo Finance SMCI historical trend analysis points to a correlation coefficient of 0.74 with the Nasdaq Composite, indicating high beta exposure. Rizzo believes that AI is an innovation that is here to stay rather than a mere disruptive technology, meaning that companies using it to their benefit will most likely perform better than the ones that are not. Therefore, most if not companies have no other option but to direct investments in AI chips and GPUs. He expects the AI chip market to reach $400 billion by 2027. However, Supermicro operates in a highly competitive market, with established players such as Dell (DELL) likely to gain share in the AI-optimized server market. That pressure could put its margins under strain, even as demand continues to rise. Recent Yahoo Finance SMCI coverage reveals revenue for last quarter at $3.85B, beating consensus by 4.3%, driven by demand from cloud computing clients and AI clusters.
