U.S. stock futures remain steady following last week's record highs, with Oracle's earnings report anticipated later today. Super Micro Computer's stock rises after receiving a Nasdaq listing extension, while Interpublic Group's shares surge due to its acquisition by Omnicom Group, forming the largest advertising company globally. Palantir's stock continues to climb after announcing an AI partnership with Anduril Industries.
U.S. equities rose in a shortened trading session, buoyed by post-election optimism. Hasbro shares surged after Elon Musk hinted at a potential acquisition, while Super Micro Computer's stock fell due to Nasdaq delisting threats. MicroStrategy benefited from rising cryptocurrency prices, and Unusual Machines saw gains after Donald Trump Jr. joined its advisory board. Meanwhile, Applied Therapeutics' shares dropped following an FDA rejection, and oil and gold futures advanced.
Super Micro Computer's stock surged 53% this week, causing $1.4 billion in losses for short sellers. The rise follows the company's hiring of BDO as its new auditor and plans to comply with Nasdaq listing rules after previous accounting issues. A positive mention from Nvidia's CEO also boosted investor confidence. Despite the increase, SMCI stock remains 73% below its 52-week high, with analysts maintaining a consensus Hold rating.
As the Nasdaq Composite is expected to surge in 2024, two AI stocks, Advanced Micro Devices (AMD) and Super Micro Computer (SMCI), are recommended for investment. AMD has seen significant growth due to its AI infrastructure products, such as the Instinct MI300 accelerators, and is expected to continue this trajectory with a target of $2 billion in MI300 revenue for 2024. Super Micro Computer is capitalizing on the AI market with its LLM-optimized AI platforms and energy-efficient server solutions, expecting significant revenue growth. Both companies are well-positioned to benefit from the anticipated economic recovery and increased demand for AI technologies.
As the stock market approaches 2024 on the back of a strong rebound, Amazon, Super Micro Computer, and SentinelOne are highlighted as top AI stocks poised to outperform the market. Amazon is expected to leverage its vast data and AI advancements to enhance customer experiences, particularly through its Alexa virtual assistant. Super Micro Computer, with its energy-efficient hardware and software solutions, is well-positioned in the generative AI space and anticipates significant sales growth. SentinelOne, a cybersecurity firm, has made substantial progress with its AI-based products and is expected to see continued revenue growth and improved profitability, making these stocks attractive to investors looking for market-beating potential in the AI sector.
The article suggests investing in three AI stocks beyond the well-known "Magnificent Seven": Taiwan Semiconductor Manufacturing (TSMC), Super Micro Computer (SMCI), and Broadcom (AVGO). TSMC is highlighted for its dominance in chip manufacturing, with a growing market share and plans to mitigate geopolitical risks by expanding production outside Taiwan. Super Micro Computer is recognized for its innovative server designs tailored for AI applications, with a significant portion of its revenue coming from AI server systems. Broadcom is noted for its acquisition of VMware, which could significantly boost earnings and play a crucial role in AI as a software platform linking various cloud services. These stocks are presented as valuable additions to an AI-focused investment portfolio, trading at reasonable multiples and offering growth potential in the AI sector.
