AI Tailwinds Propel Super Micro Computer Analyst’s Bull Case
Shares of Super Micro Computer Inc SMCI have surged nearly 50% in the past month, riding the waves of the AI-chip boom.
The company is poised to reap the rewards of the expanding artificial intelligence (AI) server market, gearing up its capacity to meet robust demand and fuel revenue growth, as highlighted by BofA Securities.
The Verdict from Super Micro Computer Analyst: Ruplu Bhattacharya reaffirmed a Buy rating for Super Micro Computer, with a bumped-up price target from $1,040 to $1,280.
The Super Micro Computer Paradigm: The AI server market is forecasted to soar from around $39 billion in 2023 to approximately $200 billion by 2027, as per Bhattacharya’s analysis.
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“SMCI stands out with its building block architecture that enables swift integration of new technology and hastens time to market, alliances with leading AI CPU/GPU/ASIC providers such as Intel INTC, Nvidia NVDA, and AMD AMD, along with its knack for tailoring configurations to specific customer needs and its liquid cooling solutions,” Bhattacharya elaborated.
Super Micro Computer has managed to bolster cash reserves for operational needs and business enlargement, “sans any hike in its yearly interest outlay tied to the offering,” Bhattacharya underlined. “Anticipate SMCI to sustain its robust revenue surge fueled by server requisites for applications spanning Artificial Intelligence (AI), High Performance Computing (HPC), big data analysis, engineering/technical workflows, streaming and content distribution, and compute-intensive graphics as well as online gaming.”
SMCI Market Update: Super Micro Computer shares had climbed by 0.14% to $1,164.60 as of the latest update on Wednesday.
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