Super Micro Computer Inc. (NASDAQ: SMCI) shares jumped sharply on Tuesday, climbing over 14% to trade at $38.31, after Raymond James initiated coverage on the stock with an “Outperform” rating and a bullish price target of $41.
The brokerage’s endorsement, which positions Super Micro as a leading “AI pure play,” has reignited investor enthusiasm despite recent volatility in the company’s share price.
Raymond James analyst Simon Leopold highlighted Super Micro’s transformation into a dominant supplier of infrastructure tailored for artificial intelligence workloads. Nearly 70% of the company’s revenue now stems from AI platforms, a figure that continues to grow as Super Micro gains market share among branded server manufacturers. The analyst noted that Super Micro currently commands 9% of the total AI platform market and an impressive 31% among branded players.
Super Micro’s unique approach-combining large-scale manufacturing with flexible, engineering-led solutions-has allowed it to carve out a competitive niche between traditional IT giants like Dell Technologies and HP Enterprise, and contract manufacturers such as Quanta.
While the company lacks some of the consulting and financing services offered by larger rivals, its ability to deliver customized, high-performance hardware has proven attractive to customers deploying hyperscale AI infrastructure.
The surge in Super Micro’s stock comes despite recent headwinds, including disappointing preliminary results for the fiscal third quarter and a downward revision of its full-year outlook due to economic uncertainty and tariff impacts. Nevertheless, Raymond James sees robust long-term growth drivers, citing the ongoing rollout of NVIDIA’s Blackwell chips and expanding demand for AI-optimized servers across industries such as finance and healthcare.
Analysts project Super Micro’s revenue to grow at a compound annual rate exceeding 25%, supported by expanding U.S. operations and a strong position in the AI infrastructure market. While some on Wall Street remain cautious, the average analyst price target still suggests significant upside from current levels.
Tuesday’s rally underscores renewed confidence in Super Micro’s strategy and its pivotal role in powering the AI revolution, positioning the company as a standout in the rapidly evolving tech landscape.
