Analysts at Raymond James have initiated a buy rating on Super Micro Computer (SMCI) with a target price of $41 per share, citing the company's leading role in AI infrastructure. Shares surged nearly 18% in premarket trading, enhanced by a $20 billion partnership with Saudi Arabia's DataVolt for AI-focused GPU platforms. The firm has seen a marked shift towards AI, with 70% of its revenue stemming from this sector. The Saudi investment in technology signals a major growth area for AI suppliers, supporting SMCI's market position.
The brokerage noted that 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.
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.
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.
Raymond James called SMCI a "pure play" and noted it has emerged as a market leader in AI-optimized infrastructure, reflecting strong growth potential.
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