Shares of Super Micro Computer (NASDAQ: SMCI) and Intuit (NASDAQ: INTU) surged 10,740% and 2,220%, respectively, over the last 15 years. That price appreciation qualifies both companies as stock split candidates in 2024. More importantly, it tells investors the companies must be doing something right. That type of outperformance does not happen by accident, and winners tend to keep on winning. Famous investor Peter Lynch once said, “You want to let the winners run.”
Here’s why Supermicro and Intuit are worthwhile investments whether or not the companies conduct stock splits this year.
Super Micro Computer: The market leader in artificial intelligence servers
Super Micro Computer builds high-performance servers and storage systems for enterprise and cloud data centers. Its products range from individual devices to full rack-scale solutions. The company sources chips, memory, interconnects, and other hardware from suppliers like Intel and AMD, and it has a particularly close relationship with Nvidia.
Supermicro has differentiated itself through modular product development and internal engineering. Specifically, it creates server building blocks that can rapidly be equipped with cutting-edge chips and hardware, and it handles most design and manufacturing in-house. Those qualities often allow Supermicro to bring new products to market before its peers. Indeed, management anticipates being first to market with computing platforms featuring the latest Nvidia Blackwell graphics processing units (GPUs).
Another benefit of modular product development is that the server building blocks can be assembled in countless combinations, such that Supermicro generally offers a broader selection of server and storage products than its peers. Put differently, the company affords its clients more flexibility in designing custom computing solutions.
Supermicro is by no means the leader in the server space. Dell Technologies holds that title. But the company has taken an early lead in the artificial intelligence (AI) server market and is quickly gaining market share. Analysts at…
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