We recently published a list of 10 AI News You Can’t Miss. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against other AI news you can’t miss.

The AI stocks selloff that started following the launch of DeepSeek is still impacting the US markets. Aswath Damodaran, NYU Stern School of Business professor of finance, said in a recent program on CNBC that he believes innovation in AI technology like DeepSeek and new models would “commoditize” AI products and could result in lower spending.

“In my view, what it does is reduce the total size of the segment of the AI market that needs high-power chips and immense amounts of data. Whether deep seek is a fake or whether it’s going to pass by, what it opens people’s eyes to is that not all AI products and services need these incredibly powerful chips and huge amounts of data and huge data centers. You can get there with much cheaper devices. I think for many companies, when they look at the AI products and services they have to develop, they don’t need this high-powered stuff. They don’t need to spend the tens of billions of dollars up front. So, I think that’s the real worry you have to have.”

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For this article, we picked 10 stocks trending based on the latest news. For each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Super Micro Computer, Inc. (NASDAQ:SMCI)

Number Of Hedge Fund Investors: 45

Matthew Tuttle from Tuttle Capital said in a Schwab Network program recently that Super Micro Computer, Inc. (NASDAQ:SMCI) has further room to grow if accounting violation confusions are cleared and the stock sees a further pullback.

“There’s still room for growth—AI is the future. They’ve been a leader in the AI server market, but I’d like to hear how they’re handling competition and the risk of becoming commoditized. If everything looks solid and there’s a bit of a pullback, that could be an opportunity to buy in.”

Columbia Acorn Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its Q3 2024 investor letter:

“Super Micro Computer, Inc. (NASDAQ:SMCI) had a tough quarter due to a confluence of negative events. It declined, but is still up significantly for the year. While demand for the company’s AI server racks remains strong, with revenue up over 100%, gross margins have fallen sharply for two straight quarters, implying a price war. In addition, Super Micro was the subject of a short-seller report and a delay in filing its annual report with the SEC. We have been taking profits in the stock all year and have only a small position, which we are maintaining given the strong performance and demand for Super Micro’s AI racks and a depressed stock valuation.”

Overall, SMCI ranks 9th on our list of AI news you can’t miss. While we acknowledge the potential of SMCI as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.