Super Micro Computer Is Well Positioned In The 'Mother of All Cycles,' Says Analyst

Shares of Super Micro Computer Inc SMCI climbed in early trading on Wednesday, even after unusual activity in the options market.

Super Micro Computer is a perfect fit in the global “secular AI-driven cycle we call the Mother of All Cycles or MOAC,” according to Rosenblatt Securities.

The Super Micro Computer Analyst: Hans Mosesmann initiated coverage of Super Micro Computer with a Buy rating and price targets of $300.

The Super Micro Computer Thesis: The stock has gained this year from a focus on the significance of generative AI, “as investors have started to appreciate the company’s inherent innovation, design, deployment, and manufacturing scale capabilities,” Mosesmann said in the initiation note.

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AI revenues now account for almost 30% of Super Micro Computer’s sales and are “accelerating and increasing visibility to 1-2 years,” the analyst stated. The company has a “formidable business model” that is aligned with “the critical factors for success in an AI driven world,” he added.

“The company’s TAM is expected to exceed $178 billion by 2027 supporting a sales CAGR of over 20%,” Mosesmann further wrote.

SMCI Price Action: Shares of Super Micro Computer had risen by 2.34% to $238.60 at the time of publishing Wednesday.

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