The AI wave is driving the growth of super microcomputers, analysts predict strong revenue growth ahead.

In the context of the prosperity of artificial intelligence chips, the stock price of Super Micro Computer Inc. (NASDAQ: SMCI) has risen by nearly 50% in the past month.

According to Bank of America Securities, the company seems fully capable of benefiting from the expanding artificial intelligence (AI) server market and is enhancing its ability to support strong demand and revenue growth.

Super Micro Computer analyst, Ruplu Batacharya, reiterated a buy rating on Super Micro Computer and raised the target stock price from $1,040 to $1,280.

Batacharya's argument for Super Micro Computer: "It is expected that the AI server market will grow from around $39 billion in 2023 to around $200 billion in 2027."

The analyst stated, "SMCI's competitive advantages include a Lego-like architecture that helps in rapid integration of new technologies and shortens time to market, relationships with leading AI CPU/GPU/ASIC providers including Intel (NASDAQ: INTC), NVIDIA (NASDAQ: NVDA), and AMD (NASDAQ: AMD), and the ability to customize configurations tailored to specific customer applications and liquid cooling products."

Batacharya mentioned that Super Micro Computer has been able to raise funds for working capital and business expansion "without increasing annual interest expenses associated with issuance." "Given the demand for servers in applications such as artificial intelligence (AI), high-performance computing (HPC), big data analytics, engineering/technical workloads, streaming and content delivery, as well as compute-intensive graphics and online gaming, we expect SMCI to continue to maintain strong revenue growth."

Stock performance of SMCI: Upon Wednesday's release, Super Micro Computer's stock price rose by 0.14% to $1,164.60.