The stock market finished higher on Tuesday – its highest level since January 2022. Prices were mainly steady as the Consumer Price Index was slightly up 0.1% over the previous month and 3.1% in the same period last year. Investors are now expected a pause to rate hikes at the end of Fed’s meeting.
Overall, S&P 500 grew 0.5% to 4,644, while NASDAQ rose 0.7% to 14,533.
Tweet of the Day
B of A: “.. Household savings are growing at 8.5% per year, a clip not [seen] in nearly 30 years. ..
.. A soft-landing means that consumers won’t have to break their piggy banks. Household liquid assets .. currently sit at $18 trillion.” 🇺🇸 pic.twitter.com/gedkWQdedQ
— Carl Quintanilla (@carlquintanilla) December 12, 2023
Chart of the Day
Here is the ten-year chart of Supermicro Computer (SMCI) as of November 15, 2023, when the stock was at $288.
Supermicro Computer delivered seasonally soft results last quarter with supply chain bottlenecks. Profit growth was flat with revenue up 14%. The September quarter is traditionally a weaker quarter for the company due to lower spending from enterprises. However, this quarter is expected to be strong, with analysts predicting revenue will climb 52%. Demand for rack scale solutions remain strong, particularly for NVIDIA HGX-H100 (NVDA) solutions which are optimized for generative AI workload. However, GPU supply chain issues also continue to hold back the company.
NVIDIA is getting all the attention for AI, but this company is benefiting from AI growth as well.
SMCI is the top holding in our Growth Portfolio and Aggressive Growth Portfolio. The stock just corrected after a parabolic run, but the numbers still look great. The company did $7 billion in revenue in 2023, and is expected to do $20 billion in 2028 as it expands operations.
