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Important points
- Supermicrocomputer shares rose 14% to a record high on Thursday as analysts said the company could benefit from the artificial intelligence (AI) boom.
- Barclays analysts raised their price target 39% to $961, citing the super microcomputer’s position in the AI ecosystem and its ties to Nvidia, AMD, and Intel.
- Bank of America initiated coverage with a buy rating and also said super micro computers could be well-positioned from growing demand for AI.
Super Microcomputer (SMCI) stock rose Thursday to future gains from artificial intelligence (AI), with analysts saying the provider of computing, storage and networking solutions could greatly benefit from rising demand for AI. The stock soared 14% to a record high on the back of expectations.
Barclays analysts cited the super micro computer’s position in the AI ecosystem and “strategic” partnerships with Nvidia (NVDA), Advanced Micro Devices (AMD), and Intel (INTC). raised its price target by 39% from $691 to $961.
“As AI architectures become more complex, SMCI not only has the design ability to mix and match components to meet the increasingly diverse needs of our customers, but also using flexible manufacturing at scale,” the analysts wrote.
Bank of America analysts initiated coverage with a Buy rating and also said they expect “this provider of server and storage solutions to benefit from AI-driven demand growth.” .
“We believe the market for AI servers is much larger than the market considering street models,” Bank of America analysts wrote, noting that supermicrocomputers have “multiple new designs, technologies and “We have the ability to collaborate,” he added. [that] It will serve us well as countless AI-related processors debut over the next few years. ”
On Thursday, Supermicrocomputer’s stock rose 14% to a record closing price of $1,004 per share. Since the beginning of 2024, the stock price has more than tripled.
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