Super Micro Computer, Inc. (NASDAQ:SMCI) is doing quite well according to Jim Cramer. The company’s stock is one of the top 10 performers in the S&P 500.
Cramer said this during a recent episode of his show. He acknowledged Super Micro’s strong performance but said he prefers another stock in the same sector. “There was another data center play.
This time, it’s Super Micro, an important partner of NVIDIA. Now I think that… Not Super Micro, I think Dell is the right investment in the space, but there’s no denying the stock is doing quite well,” Cramer said. Super Micro designs and sells high-performance server and storage systems.
The company’s products serve markets like data centers, cloud computing, AI, 5G, and edge computing.
Super Micro’s strong market performance
Cramer said the stock seems cheap compared to industry peers, despite past accounting issues.
“No, no. To tell you the truth, I mean, this one had some accounting issues. They do seem to be now long enough behind them that analysts are starting to recommend the stock again.
It’s relatively cheap versus the whole cohort. If you want to consider the cohort… like a CoreWeave or, of course, an NVIDIA, and I would tell you, it is more expensive than Dell. I do like Dell more, but I think you could do a lot more… with Super Micro.
But let me tell you something, you’ve got more product knowledge than I do, and I like what you had to say,” he commented. While SMCI shows potential as an investment, Cramer advised investors to look at other AI stocks. He thinks they might offer more upside potential and less downside risk.
