Super Micro Computer’s rally is entering full FOMO mode

There’s a mad scramble to get exposure to Super Micro Computer.

Shares of the server company have doubled this month after this morning’s strong gains on heavy volumes.

Ten minutes into the trading day, more money changed hands trading Super Micro ($2.3 billion) than any other US publicly traded company. Tesla and Nvidia usually top that leaderboard at all times; Super Micro even being close to these two is something that doesn’t happen often in the case of the former, or ever when it comes to the latter.

In December, we outlined a hypothetical bull case for the stock:

“A rose-colored-glasses thesis for the company would look a little something like this: the accounting issues don’t appear to be snowballing, the firm is taking the necessary steps to stay on the Nasdaq, it’s still in the AI business (and that business is booming!), and the stock is considerably less expensive than it was at its peak.”

A key customer (Nvidia) still considers Super Micro a critical partner, and investors are buying into the idea that Nvidia’s Blackwell GPU and Super Micro’s server solutions will ramp higher, hand in hand.

At $33 billion in market cap, Super Micro is still worth about half of its March 2024 peak.