In this piece, I am evaluating two data center stocks: Super Micro Computer (SMCI) and IBM (IBM). A closer look leads me to establish a bearish view for Super Micro Computer and a neutral view for IBM.
Super Micro Computer (Super Micro) manufactures servers for cloud computing, data centers, big data, artificial intelligence, 5G, and the Internet of Things. It also offers other computer products, including energy-efficient computing technology. Meanwhile, IBM is of course a legacy computing giant that now offers servers for data centers and a wide range of enterprise software, networking equipment, and other computing needs.
Super Micro stock is still higher by 55% YTD after plummeting 52% over the past three months. The shares are also up 78% over the past year. On the other hand, IBM stock has soared 25% over the last three months, bringing its year-to-date return to 35%. Shares of…
