TECH - Why Is Super Micro Computer Stock Trading Higher Monday? | Benzinga
Super Micro Computer Inc (NASDAQ:SMCI) shares are trading higher after JP Morgan initiated coverage on the stock with an Overweight and a price target of $1,150.
Analyst Samik Chatterjee re-rated the stock, with the compute cycle at the forefront of the AI revolution.
Super Micro is the leading company in the AI computing market, which is burgeoning with demand stemming from training AI models, Retrieval- Augmented Generation by Tier 2 CSPs and Enterprises, and eventually, AI inferencing workloads, as per the analyst.
The analyst expected the leadership to continue, led by a balance of custom-built solutions and fast time to market, although the potential upside is more likely from rapid expansion in the AI Server market rather than expansion of the already premium valuation multiple.
The AI revolution, driven by Compute, is in its early stages, with demand primarily from large hyperscalers and Tier 2 Cloud ...