Why Super Micro Computer Stock Surged Today
Super Micro Computer (NASDAQ: SMCI) stock posted big gains in Friday's trading. The server specialist's share price closed out the day's trading up 10.9% amid gains of 1.2% for the S 500 index and 1.7% for the Nasdaq Composite index.
In addition to bullish momentum for the broader market today, Super Micro Computer (also called Supermicro) stock got a big boost from new artificial intelligence (AI) spending guidance from one of the tech industry's biggest players. While some investors and analysts have questioned whether the AI infrastructure investment cycle is losing speed, it looks like will once again dramatically increase its spending.
Microsoft Vice Chair and President Brad Smith published a blog post on the company's website today indicating that the software giant plans to spend approximately $80 billion on AI infrastructure this year. For comparison, the company is expected to have capital expenditures of at least $53 billion for 2024, with the large majority of that spending going toward building out its data-center infrastructure for AI.
Source Fool.com
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