Supermicro Stock Jumps as Raymond James Kicks Off Coverage With Bullish Rating
Key Takeaways
- Supermicro shares surged Tuesday after Raymond James initiated coverage of the company with a bullish rating.
- The AI server maker has “emerged as a market leader,” the analysts said.
- Even with Tuesday’s gains, Supermicro shares are worth half of what they were a year ago.
Super Micro Computer (SMCI) shares jumped Tuesday after Raymond James initiated coverage of the server maker’s stock with an “outperform” rating and $41 price target.
The stock rose nearly 15% to more than $38 in recent trading, though even with Tuesday’s gains, the shares have lost over half their value from a year ago.
Supermicro has “emerged as a market leader in AI-optimized infrastructure,” Raymond James analysts told clients. The company has 9% of the $145 billion AI platform market, which could climb, the analysts said, adding that it leads branded suppliers, according to research firm Dell’Oro.
Earlier this month, several analysts cut their price targets for Super Micro after the Nvidia (NVDA) partner reduced its sales outlook, and pointed to customers delaying product decisions amid economic uncertainty.
Supermicro shares have been volatile over the past few months, pressured by downward forecast revisions, disappointing results, and worries about the company’s accounting practices. In February, the company narrowly avoided being delisted for delinquent financial filings.