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Key Takeaways
- Super Micro Computer shares surged 14% to a record high Thursday as analysts said the company could gain from the artificial intelligence (AI) boom.
- Barclays analysts raised their price target 39% to $961, citing Super Micro Computer’s position within the AI ecosystem and its relationships with Nvidia, AMD, and Intel.
- Bank of America initiated coverage with a “buy” rating and also said that Super Micro Computer could be well positioned to gain from rising AI demand.
Super Micro Computer (SMCI) shares soared 14% to a record high Thursday amid anticipation of future gains driven by artificial intelligence (AI) as analysts said that the provider of computing, storage, and networking solutions could benefit significantly from rising demand for AI.
Barclays analysts raised their price target for the stock 39% to $961 from $691, citing Super Micro Computer’s position within the AI ecosystem and “strategic” partnerships with NVIDIA (NVDA), Advanced Micro Devices (AMD), and Intel (INTC).
“As AI architecture becomes more complex, SMCI has design capabilities to mix/match components to meet a customer’s increasingly varied needs, as well as using flexible manufacturing with scale to meet these varied requirements,” the analysts wrote.
Bank of America analysts initiated coverage with a “buy” rating, and also said they expect “this provider of server and storage solutions will be a beneficiary of AI-driven demand growth.”
“We believe the market for AI servers is much larger than is factored in Street models,” Bank of America analysts noted, adding that Super Micro Computer has an “ability to work with multiple new designs and technologies [that] will serve it well as myriad AI-related processors debut in the next several years.”
Super Micro Computer shares surged 14% to a record close at $1,004 per share Thursday. The stock has more than tripled in value since the start of 2024.