Overview

• Super Micro Computer shares soared 40% this week, driven by Raymond James initiating coverage with an Outperform rating and a $41 price target.
• The company signed a $20 billion multiyear deal with Saudi Arabia's DataVolt to supply GPU platforms and liquid-cooled AI racks for hyperscale data centers.
• SMCI has solidified its position as a leader in AI-optimized infrastructure, commanding 9% of the $145 billion AI platform market, according to Dell’Oro.
• Despite strong growth prospects, the company continues to face volatility due to past governance issues, including delayed SEC filings and narrowly avoiding Nasdaq delisting earlier this year.
• Plans to expand U.S. manufacturing to produce 1,500 liquid-cooled AI racks per month further highlight SMCI's focus on scaling operations to meet rising demand.