The artificial intelligence (AI) mega trend is well underway, but headwinds are forming after the initial bullish charge for certain AI-related stocks.
One company that’s been in the headlines for all the wrong reasons lately is Super Micro Computer Inc. (Nasdaq: SMCI).
As you may know, AI tech relies heavily on data centers. These facilities house thousands of physical servers, which allow AI to process and spit out results in the blink of an eye. Super Micro builds server racks that help cool equipment involved in these processes. It’s a sort of picks-and-shovels stock for the AI revolution. And SMCI stock has gone gangbusters thanks to its competitive edge.
This post originally appeared at Money & Markets.