Deeply tied to NVIDIA, "AI giant stock" Super Micro Computer receives institutional bullish calls again.
Super Micro Computer is highly regarded by institutions for its role in the field of artificial intelligence, and its collaboration with NVIDIA is one of the driving forces behind its rise. The company's performance continues to grow, with an expected earnings per share of $35 by the 2025 fiscal year, and a 25% increase in stock price this year. Super Micro Computer provides high-performance AI server products for building AI server clusters, which is of significant importance in supporting the development of artificial intelligence. Wall Street analysts have given Super Micro Computer a "moderate buy" rating, with an average target price of $956.33.
Zhitong App learned that due to Super Micro Computer's role in the artificial intelligence (AI) revolution, investment research firm Hedgeye analyst Felix Wang has joined the bullish camp. Wang stated that the biggest driving force for Super Micro Computer's rise is its close collaboration with NVIDIA, especially in building AI GPU-based servers.
As of the Tuesday's close, Super Micro Computer has risen by over 7%, and has surged by over 300% year-to-date; NVIDIA closed up by over 7%, with an 86% increase year-to-date.
Before the AI boom, Super Micro Computer's performance has been outstanding, with an average revenue growth rate of about 42% over the past two years.
"We lean more towards the scenario of too much demand chasing too little supply," Wang added. "This scenario is happening in the AI server field, and Super Micro Computer is a growing super player in this field."
Wang pointed out that the demand for AI is accelerating, requiring more complex data center infrastructure, which is an area of strength for Super Micro Computer.
It is understood that leveraging the advantage of deep cooperation with NVIDIA over the years, Super Micro Computer's high-performance AI server products can be used to build AI server clusters, high-performance computing clusters, as well as store and manage large-scale AI-related data. Therefore, the company's server and storage solutions are of significant importance in supporting the development of AI.
Wang predicts that Super Micro Computer's earnings per share for the fiscal year 2025 will reach $35, and for the fiscal year 2027 will reach $58. Wang also forecasts that the stock price of Super Micro Computer will rise by 25% this year and by 45% in the next two years.
Overall, Wall Street analysts have given Super Micro Computer a "moderate buy" rating, with an average target price of $956.33, representing an 18% decrease from the current level.
