Will Super Micro Computer Be Worth More Than Intel by 2027?

Super Micro Computer (NASDAQ: SMCI) and Intel (NASDAQ: INTC) have been in the limelight over the past year or so thanks to the ability of both companies to capitalize on the booming demand for artificial intelligence (AI) chips. But a closer look at the stock price performance of both companies tells us that investors are heavily favoring one of them over the other.

While share prices of Super Micro Computer (doing business as Supermicro) have jumped a stunning 776% in the past year, Intel has recorded relatively modest but solid gains of 71%, outpacing the PHLX Semiconductor Sector index’s 57% gains. Supermicro stock’s outstanding surge has brought its market cap from $5 billion a year ago to more than $48 billion as of this writing.

Intel’s market cap, on the other hand, has increased from $104 billion a year ago to $181 billion as of this writing. Supermicro, therefore, has enjoyed a much bigger surge in its market cap in the past year. But can it continue to outpace Intel on the stock market and become a bigger company in terms of market cap by 2027? Let’s find out.

Super Micro Computer expects to grow at a faster pace than Intel

A big reason why the market has rewarded Supermicro stock with eye-popping gains is because of the terrific growth in the company’s revenue and earnings. A closer look at the chart below shows that Supermicro significantly outpaced Intel’s top- and bottom-line performance.

A closer look at the latest financial results of both companies shows why investors have been piling into Supermicro stock. The booming demand for AI chips turned out to be a bigger tailwind for Supermicro when compared to Intel. That’s because Supermicro’s server rack solutions allow data center operators to economically deploy AI accelerators in a way that they can reduce cooling and electricity costs while keeping performance at optimal levels.

It is worth noting that Supermicro’s AI server solutions are used for mounting AI chips from…