Super Micro Computer (NASDAQ: SMCI) Futures are Pointing to 18% Upside at Open

Shares of Super Micro Computer (NASDAQ: SMCI) are up nearly 18% or $7 a share in the premarket. Much like other tech heavyweights, it’s getting a boost from the cooling trade war and massive deal with Saudi Arabia.

Fueling even more upside, analysts at Raymond James just initiated a buy rating on SMCI with a price target of $41 a share.

“The brokerage said Super Micro has positioned itself as a leading supplier of infrastructure tailored for artificial intelligence workloads. Analyst Simon Leopold noted that around 70% of the company’s revenue now comes from AI platforms, with gains in market share among branded server makers,” added Guru Focus.

There’s Still Plenty of Upside Opportunity in SMCI

First, Super Micro Computer just partnered with Saudi Arabia-based DataVolt.

The deal, valued at $20 billion is expected to fast-track the delivery of ultra-dense GPU platforms and rack systems for DataVolt’s AI campuses in the region.

Second, that follows an announcement that the Saudis will invest $600 billion in aerospace and defense, energy, and security deals.

“The theme was clear in Riyadh… the AI Revolution is coming to the Saudi Kingdom and Riyadh will be a major buyer of AI chips, software, autonomous/robotics, and data centers over the next decade,” Wedbush analysts added.

Additionally, Raymond James called SMCI a “pure play.”

“Super Micro … has emerged as a market leader in AI-optimized infrastructure,” Raymond James analyst Simon Leopold, who put an Outperform rating and $41 price target on Super Micro, said, as quoted by Seeking Alpha. “AI platforms now comprise nearly 70% of Supermicro’s revenue and is also expanding its share of the branded AI server market.

In short, there’s still a lot to like about Super Micro Computer’s stock.

The post Super Micro Computer (NASDAQ: SMCI) Futures are Pointing to 18% Upside at Open appeared first on 24/7 Wall St..