AI-Related Stocks: A Phenomenal Year and the Road Ahead AI-Related Stocks: A Phenomenal Year and the Road Ahead

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By Ronald Tech

AI-related technology stocks in 2023 skyrocketed, delivering impressive gains for investors and outperforming expectations. Notably, Advanced Micro Devices, Super Micro Computer, and Palantir saw significant increases, rising 127.6%, 246.2%, and 167.4% respectively.

The Rise of Partner, Competitor, and User of Nvidia’s Hopper AI Accelerators

The dominant theme in 2023 was artificial intelligence. OpenAI’s ChatGPT chatbot made its debut in November 2022, and Nvidia posted remarkable revenue growth in May 2023, signaling the onset of a new AI arms race.

Super Micro Computer, a long-time partner of Nvidia, experienced a surge in AI-related orders due to its energy-efficient server design. The company’s revenue grew 37% in fiscal 2023 and is expected to grow more than 40% in fiscal 2024.

Meanwhile, Advanced Micro Devices (AMD) saw a resurgence after unveiling its MI300 AI accelerator as a potential competitor to Nvidia’s H100. Despite lower projected revenues than Nvidia, investor optimism about AMD’s future prospects in the AI accelerator market grew.

Palantir, which experienced a downturn in the previous years, achieved generally accepted accounting principles (GAAP) profitability in 2023, marking a significant turnaround and displaying impressive operating leverage that bolstered investor confidence in its ability to generate substantial profits in the future.

Potential for 2024 and Beyond

While a repeat of the extraordinary performance in 2023 might be ambitious, the AI revolution is poised to be a multiyear phenomenon, akin to the multiyear growth story of the internet revolution from 1995 to 1999.

Super Micro Computer and the Growth Potential of Hardware in AI

The Expanding Horizons of AI Hardware: Super Micro Computer and Growth

With the rise of generative AI, hardware suppliers are positioned for impressive growth, fundamentally elevating their potential in the market. Super Micro and AMD, in particular, stand to reap substantial gains from this technology.

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Growth Potential of Generative AI in Hardware

Generative AI holds the potential to revolutionize the hardware space, unlocking new growth opportunities for companies like Super Micro and AMD. While the field of hardware is undeniably competitive, the advent of generative AI promises to provide an edge to hardware suppliers without significantly increasing competition.

Riding the Wave: Super Micro and AMD

Amidst the landscape of generative AI, Super Micro and AMD stand out as frontrunners poised for substantial growth. The adept execution of their strategies positions them to capitalize on the expansion of generative AI, presenting a promising outlook for potential investors.

Investing in Super Micro Computer

Before considering an investment in Super Micro Computer, it is imperative to acknowledge the enticing growth prospects offered by generative AI in the hardware sector. The potential for further growth and success for Super Micro and AMD on account of their strategic execution presents an appealing investment scenario.