Super Micro (SMCI) Soars 10.9% on Strong Chip Demand

We recently published 10 Firms Making Effortless 10-40% Gains. Super Micro Computer Inc. (NASDAQ:SMCI) was one of Friday’s top performers.

Super Micro soared by 10.94 percent on Friday to finish at $32.64 apiece, mimicking the rally in the artificial intelligence sector after one of the world’s semiconductor giants announced that it was boosting its capital expenditures this year amid strong demand.

In conjunction with its earnings release on the same day, Taiwan Semiconductor Manufacturing Company said that it would bolster its capex by 33 to 37 percent this year to a range of $52 billion to $56 billion versus the $38 billion to $42 billion last year, on the back of strong demand for semiconductors from its customers.

A Super Micro server. Photo from Super Micro website

Optimism spilled over to Super Micro Computer Inc. (NASDAQ:SMCI), as well as IREN Ltd., given their heavy exposure to Nvidia Corp.’s GPUs, which are manufactured by TSMC.

Additionally, TSMC’s strong earnings performance last year bolstered robust prospects for the broader AI sector, having achieved a 35 percent expansion of its net income in the fourth quarter alone at NT$505.7 billion versus NT$374.68 billion in the same period last year. Net sales, on the other hand, jumped by 20.5 percent to NT$1.046 trillion from NT$868.46 billion year-on-year.

For its part, Super Micro Computer Inc. (NASDAQ:SMCI) is set to announce the results of its earnings performance for the second quarter of fiscal year 2026 in the last week of January, based on its historical earnings reports.

While we acknowledge the risk and potential of SMCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMCI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.