Dan Ives, an equity research analyst at Wedbush Securities, focuses on major technology firms and the latest trends, notably artificial intelligence (AI). A crucial yet often overlooked sector in AI development is IT infrastructure, which Ives believes is a significant investment opportunity. A key component of AI development is the use of graphics processing units (GPUs), primarily manufactured by Nvidia and Advanced Micro Devices (AMD). Other big tech companies like Microsoft and Amazon are also entering the GPU market. Ives predicts that AI-related capital expenditures (capex) could reach $1 trillion over the next three years. Ives highlights Supermicro Computer (NASDAQ: SMCI) as a promising stock, noting its role as an IT architecture specialist that optimizes how GPUs are housed in data centers. With Nvidia's upcoming Blackwell series GPUs projected to generate multibillion-dollar sales, Supermicro is expected to benefit significantly.

Additionally, as more tech companies develop their own chips, Supermicro's potential for growth in IT infrastructure looks positive. However, there are risks associated with investing in Supermicro. Its stock has faced volatility, influenced by fluctuating gross margins and a recent short-seller report from Hindenburg Research that raised concerns about accounting practices. While the short report created negative sentiment and led to a stock decline, Ives believes the long-term prospects for Supermicro remain strong due to increasing investments in IT capex. In conclusion, Supermicro is well-positioned to capitalize on the expanding AI IT infrastructure market, making it a top pick for investors seeking opportunities in this sector. Ives invites investors to take advantage of the current market conditions before potential gains slip away.