Super Micro Computer (NASDAQ: SMCI) Continues Its Rally, With Shares Rising Early Wednesday

This momentum defies broader market concerns over tariffs, as investors focus on the booming demand for artificial intelligence (AI) servers.

Super Micro Computer (NASDAQ:SMCI) shares are continuing their rally, rising early Wednesday following an 8.5% surge the previous day. This momentum defies broader market concerns over tariffs, with investors instead focusing on the booming demand for artificial intelligence (AI) servers.

Optimism over AI server growth was further fueled by Taiwan’s Foxconn, also known as Hon Hai Precision Industry, reporting a 25% year-over-year increase in revenue for the first two months of 2025. The company is also expecting a strong first-quarter performance.

Like Super Micro, Foxconn is a key manufacturer of AI servers powered by Nvidia (NASDAQ:NVDA) chips, suggesting a robust outlook for the sector.

Super Micro's stock has faced significant volatility in recent times, with retail investors largely pouring into the name. The stock is also a preferred pick among those utilizing leveraged single-stock funds.

The company recently managed to file its delayed 10-K form, fending off a threat of delisting. A new round of insider selling was also reported, with Senior Vice Presidents Sara Liu and George Kao selling millions of dollars worth of shares on February 26 as the stock price surged following the financial filing.

While insider sells can sometimes be a factor that weighs on stocks, they also reflect potential profit-taking following a sharp run-up.

Super Micro's stock has soared in recent months, becoming a hot pick among retail investors who are betting on the continued rise of AI infrastructure demand. However, this has also made the stock highly volatile.