As we dive into the first quarter of 2024, the stock market has already witnessed some astonishing performances. Among the standout performers are Super Micro Computer, and Root, all of which have seen their share prices more than double since the beginning of the year.
Super Micro Computer (SMCI) – Up 255%
Super Micro Computer has defied expectations by not only doubling but tripling its stock value in 2023, and now, it’s experiencing another surge, up 255% in 2024. The company, known for providing server and storage systems for accelerated computing, has been capitalizing on the demand for high-performance computing driven by the artificial intelligence (AI) revolution.
Its revenue growth has been impressive, with a 46% increase in fiscal 2022 and a further 37% rise in fiscal 2023. Moreover, its latest quarter reported a staggering 103% revenue increase, with even more promising growth projections for the fiscal third quarter.
Root (ROOT) – Up 483%
Root, the smallest of the two stocks by market capitalization, has experienced the most significant gain, up a staggering 483% in 2024. Despite facing challenges after its late 2020 IPO, Root has emerged as a disruptor in the insurance industry, particularly in auto insurance. Although the company is yet to turn a profit, its revenue rose by an impressive 46% in 2023, indicating positive momentum for its growth trajectory.
Sustaining Momentum in an Ever-Evolving Market
The extraordinary performance of Super Micro Computer, and Root in the first quarter of 2024 highlights the dynamic nature of the stock market. While each company operates in distinct sectors and faces unique challenges, their ability to deliver substantial returns to investors underscores their resilience and strategic positioning in their respective industries.
As we continue through the year, all eyes will be on these two stocks to see if they can maintain their momentum and continue to outperform expectations.
