Fear has a way of clouding judgment on Wall Street. Over the last few months, a wave of caution has gripped the artificial intelligence (AI) hardware sector. Investors are increasingly worried that the first layer "picks and shovels" trade, the strategy of buying the companies that build the physical infrastructure for AI, is coming to an end. Consequently, stock prices across the sector have slipped as the market anticipates a slowdown in spending.
However, a closer look at the actual financial numbers tells a completely different story. There is a massive disconnect between market sentiment and business reality, and nowhere is this clearer than with Super Micro Computer (NASDAQ: SMCI).
