Will Super Micro Stock's Outperformance Last?

LAS VEGAS, NEVADA - MARCH 10: Charles Liang, CEO of Supermicro, and Liz Claman speak onstage during ... More the HumanX AI Conference 2025 at Fontainebleau Las Vegas on March 10, 2025 in Las Vegas, Nevada. (Photo by Bigfor HumanX Conference)
Super Micro Computer stock has risen roughly 10% so far this year, compared to the broader S&P 500, which has dropped about 8% year-to-date. Despite this gain, the stock is still down nearly 70% from its all-time highs reached in March 2024. Recently, a few positive developments—such as growing demand for its AI server systems and some resolution of corporate governance concerns from last year—have helped lift sentiment. So, is now the right time to consider buying SMCI stock?
Although SMCI stock shows potential, investing in a single company carries risks. In contrast, the Trefis High Quality Portfolio, composed of 30 stocks, has consistently outperformed the S&P 500 over the past four years. Why? Because these stocks have delivered superior returns with lower volatility compared to the broader index, as demonstrated in the HQ Portfolio performance metrics.
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"I'm worried to come off as too bullish, but I think it's hard not to be pretty constructive on the market going forward." Related: Veteran fund manager sends dire message on stocks The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.