Shares of Super Micro Computer (NASDAQ: SMCI) soared by 14% to achieve an all-time high on Thursday, driven by bullish AI growth forecasts. Analysts noted that the company, renowned for its computing, storage, and networking solutions, stands well-positioned to capitalize on the increasing demand for AI.
Analysts at Barclays have increased their price target for the stock by 39%, moving it up to $961 from the previous $691. They attribute this adjustment to the significant role of Super Micro Computer in the AI ecosystem and its strategic alliances with NVIDIA (NVDA), Advanced Micro Devices (AMD), and Intel (INTC).
The analysts mentioned that as the complexity of AI architecture escalates, SMCI demonstrates the ability to adapt and modify components to satisfy the expanding range of needs of the customers. Furthermore, they apply scalable and flexible manufacturing techniques to meet these diverse requirements.
Bank of America on SMCI
Analysts from Bank of America have also commenced coverage with a Buy rating, expecting the server and storage solutions provider to benefit from growing AI-driven demand.
Bank of America analysts noted,
“We believe the market for AI servers is much larger than is factored in Street models.”
Bank of America analysts further emphasized that Super Micro Computer’s capacity to adapt to various new designs and technologies positions it favorably, especially with the imminent introduction of numerous AI-related processors in the coming years.
Super Micro Computer (NASDAQ: SMCI) Stock Reaction
SMCI stock surged 14.02% to close at $1004 on Thursday. The traders had exchanged hands with 24,985,513 (24.98 million) shares compared to the average daily trading volume of 6.45 million.
