Contest Matchup #5: Intel vs Super Micro Computer - 7investing 7investing
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Contest Matchup #5: Intel vs Super Micro Computer

Two semiconductor companies go head-to-head in the fifth of our Stockpicking matchups.

March 28, 2024

Two computing leaders who are benefiting from the semiconductor renaissance. Which chip pick will show the greater returns in 2024?

Welcome to our 2024 Stockpicking competition! We are on a quest to find the best stock opportunities of the year for investors. Enter for free, with a chance to win a $1,000 Amazon gift card and a a free year of 7investing!

To complement our contest, we’ll be publishing seven head-to-head matchups between stocks; and we’ll include the winners in our own 7investing Team entry. At the bottom of each article is our voting poll, where you can help us determine which of these two companies will be the better-performer over the upcoming three-year period.

To following along with the event and to have all matchups sent directly to your Inbox, join our free email list:

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Our 5th Matchup: Intel vs Super Micro Computer

Our fifth head-to-head matchup is two companies who are leaders in the semiconductor industry. Intel (Nasdaq: INTC) is one of Silicon Valley’s original pioneers, whose founder Gordon Moore developed the revolutionary “Moore’s Law”. Super Micro Computer (Nasdaq: SMCI; aka “Supermicro”) is a leading developer of data center servers, with 30 years of experience and a stock that’s recently been skyrocketing.

Intel is wooing several of America’s largest tech companies — including Apple and NVIDIA — to manufacture their chips domestically in the US. This would free them from the geopolitical risks of working with Taiwan Semiconductor, who is domiciled in a country who is constantly being threatened by military force from China. And while Intel’s own processors are facing intense competition and declining sales, its new Foundry Services division doubled in size last year and has now reached $1 billion in annual revenue. Intel has benefitted from funds from America’s CHIPS Act, helping it to reduce the cost of capital to build out its new mega-fab in Ohio.

With a new and well-respected leader in Pat Gelsinger, a reinvigorated culture, and an overhaul of its capital allocation priorities, Intel has several investors excited about its upcoming turnaround strategy.

Supermicro takes the cutting-edge chips designed by NVIDIA (or Intel), which are then manufactured by Taiwan Semi (or Intel), and then uses them to build and install modular servers into data centers. The speed of innovation in AI has made this a very lucrative niche market, with mega-projects from Meta Platforms’ Metaverse and Apple renewed focus on computing infrastructure becoming a huge boon to the top-line.

Supermicro’s CEO Charles Liang is still at the helm after founding the company 30 years ago. Its well-established relationships with Silicon Valley’s elite have led to the adage “No one moves faster than Supermicro.”

Will Intel or Supermicro be the better investment for our 7investing portfolio on Stock Card to own? Cast your vote in our live poll below!

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