© Reuters. Rosenblatt hikes Super Micro Computer (SMCI) PT to $1,300 amid AI computing momentum
Rosenblatt analysts raised the price target on the Super Micro Computer (NASDAQ:) to $1,300 from $700, citing “continued momentum in AI computing.”
“Key to the story is for investors to consider that the company is benefiting not only from secular AI growth (over 50% CAGR over next several years), but material share gains,” the analysts wrote in a Monday note.
“We anticipate these gains to reach double digits in the next couple of years, up from the current mid-single digits, with a particular focus on enterprise,” they added.
The analysts pointed out that the integration of liquid cooling technology is a pivotal factor in the expansion of cloud capabilities for AI, viewing it as a significant catalyst for hyper-scale engagement.
Traditional Original Design Manufacturers (ODMs) in Asia and conventional server Original Equipment Manufacturers (OEMs) are not well-positioned to quickly adapt to the diverse and fast-evolving demands for compute rack-level configurations in the rapidly growing AI sector.
“We stress, if Supermicro can gain share in the rather stagnant Xeon general purpose shifts in over a decade with their U.S. based centric manufacturing, imagine chaos in timelines, liquid cooling (all in the U.S.), and significant portfolio coverage,” the analysts said.
SMCI shares fell over 1% in premarket trading Tuesday.
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