In the wake of NVIDIA Corp‘s (NASDAQ:NVDA) recent earnings report, Super Micro Computer Inc (NASDAQ:SMCI) shares have been fluctuating. Analysts have weighed in on the future of the stock.
What Happened: Super Micro Computer, a provider of AI systems and GPU servers, saw its shares rise significantly earlier this year, reaching a year-high in mid-March. However, the stock has been volatile since then, with significant drops in late April and early May. Following Nvidia’s strong earnings report, SMCI shares experienced further turbulence.
Despite this, the stock is still up by an impressive 210% year-to-date. Analysts at Bank of America believe that Super Micro is well-positioned to benefit from the growing demand for AI-related accelerated computing, particularly from “tier 2” cloud service companies, according to a CNBC report.
"Only 1% of datacenters today use liquid cooling, but Supermicro management expects that percentage to grow to 20% in the next 12-18 months," BofA noted. "We see Supermicro as having a ...