“Tech stocks got whacked in 2022 — but one server maker soared almost 90%, beating all its peers”
December 28, 2022
“It’s been a brutal year for tech stocks. The Nasdaq is headed for its worst slump since 2008 and is poised to underperform the S&P 500 for a second straight year. Among mega-cap tech stocks, Amazon, Meta and Tesla have each lost at least half their value.
Investors looking for some sign of optimism can turn to a 29-year-old server maker located in the heart of Silicon Valley. Shares of Super Micro Computer have soared 89% in 2022, topping all other U.S. tech companies valued at $1 billion or more. Supermicro has a market cap of $4.4 billion, up from $2.4 billion at the start of the year.
Supermicro manufactures computers and sells them to companies, which use them as servers for websites, data storage and applications like artificial intelligence algorithms. In the low-margin server business, Supermicro competes with Dell, IBM and Hewlett Packard Enterprise as well as lesser-known players such as China’s Inspur. According to estimates from The Next Platform, Supermicro had about 2.6% of the market in 2021.
Supermicro has sought to differentiate itself in the market by allowing customers to more easily customize their computers. That makes for a more profitable offering than off-the-shelf servers...”
This is why they were able to expand in my opinion. What I’m about to say deals with the software side so I don’t know if this company implemented this, but operating systems like Windows like customization less and less it seems these days. They try to force people to use their products, like internet explorer, and it’s hard to remove them from the OS. Basically what I’m saying is this is prime time to take market share away from companies like Microsoft. If you’re a software company and you want an easy way to make money during this recession companies like Microsoft are your target. After overcoming the brand name it’ll be easy to steal their market share.