SM - Super Micro stock hits all-time high fueled by new AI initiatives

2023-03-21 17:21:25 ET

Super Micro Computer ( NASDAQ: SMCI ) shares climbed almost 10% Tuesday, as the server and storage technology company hit an all-time high and announced new products for use in artificial intelligence applications.

Earlier in the day, Super Micro ( SMCI ) said it has begun shipping its new servers that feature Nvidia's ( NVDA ) HGX H100 8-GPU systems for use in AI training, high-performance computing, deep learning and other high-end computing systems. Super Micro's ( SMCI ) announcements came in conjunction with Nvidia ( NVDA ) unveiling a series on new products and partnerships for AI technologies at its GTC event .

Super Micro ( SMCI ) shares touched a 52-week-high of $108.35 before closing at $108.25 a piece. Super Micro's ( SMCI ) stock price has been on a tear of late, and has risen almost 60% over the last two months.

Super Micro ( SMCI ), like many server and storage technology companies, has begun throwing its weight into the AI sector. In February, Seeking Alpha contributor Kingsley Park Research said that Super Micro ( SMCI ) is "central to the AI boom" and undervalued as it had just completed a large order with Facebook parents Meta Platforms ( META ), and has secured a spot as a top partner with Nvidia ( NVDA ).

Super Micro's ( SMCI ) stock performance and product advancements added support for contributor Steven Cress's ranking of the company as his top tech stock pick for 2023 . Cress cited Super Micro's ( SMCI ) position as a "tech leader that offers diverse systems, designing the newest tech innovations to optimize products" among the reasons for his upbeat take on Super Micro's ( SMCI ) opportunities this year.

Wall Street analysts currently have a buy rating on Super Micro's ( SMCI ) stock, while Seeking Alpha authors also give the company's shares a rating of buy. Seeking Alpha's Quant System, which historically outperforms the stock market, is more upbeat, and gives Super Micro ( SMCI ) stock a consensus strong buy rating .

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