Stocks Pick Up as First Quarter Nears End

The stock market rallied on Wednesday, as investors’ sentiments was lifted by easing concerns around the banking sector.

Overall, S&P 500 increased 1.4% to 4,028, while NASDAQ grew 1.8% to 11,926.

Lululemon Athletica’s (LULU) shares jumped 13% after it reported strong revenue and earnings that beat estimates.

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Here is the one-year chart of Supermicro Computer (SMCI) as of March 14, 2023, when the stock was at $92.

SMCI is a Silicon Valley-based manufacturer of server and storage systems for enterprise data centers, cloud computing, artificial intelligence (AI), 5G, and edge computing.

The company is one of the stock market’s top stocks as AI investments fuel growth. Last qtr, SMCI delivered EPS of $3.26 versus $0.88 a year ago, equating to 270% profit growth. Revenue climbed 54% year over year. Meanwhile, expenses increased only 8% as R&D increased 8%, Sales & Marketing grew 30% and General & Administrative expenses declined 9%.

Last week, the company announced it is shipping its new top-of-the-line GPU servers with NVIDIA’s (NVDA) HGX H100 8-GPU system, the world’s AI supercomputer. This news helped SMCI stock to break out to new All-Time highs.

SMCI is our top holding in the Growth Portfolio and Aggressive Growth Portfolio.

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