Shares of server solutions provider Super Micro (NASDAQ:SMCI) jumped 17.7% in the morning session after the company announced shipments of high-density servers powered by AMD's EPYC 4005 processors and revealed a $20 billion multi-year partnership with Saudi data center firm DataVolt. The deal aims to accelerate delivery of GPU platforms for hyperscale AI campuses in Saudi Arabia and the U.S.
Raymond James opined that Super Micro has positioned itself in a sweet spot between the branded IT suppliers, such as Dell and HP Enterprises, and contract manufacturers, such as Quanta.
Raymond James has initiated coverage on Super Micro Computer (NASDAQ:SMCI) with an Outperform rating. This move comes in light of Supermicro's strong standing in the AI-optimized infrastructure sector and its swift revenue growth.
Shares of server solutions provider Super Micro (NASDAQ:SMCI) jumped 15.8% in the afternoon session after Raymond James analysts initiated coverage of the stock with a Buy rating and a price target of $41. The analysts called out SMCI's leadership in "AI-optimized infrastructure," noting that artificial-intelligence platforms represented approximately 70% of the company's sales.
Analysts, including those from Wells Fargo, UBS, Raymond James, and Craig-Hallum, slashed their price targets and expressed concerns over the company's growth and execution challenges.
Risk-on sentiment dominated Wall Street on Wednesday, as upbeat earnings reports and conciliatory messages from the Trump administration helped lift investor confidence.
U.S. equities are pushing higher for a third straight session, eyeing the longest winning streak since the Trump tariff announcement on April 2, as optimism over corporate earnings and easing trade tensions boosts risk sentiment.
