Overview

• Raymond James initiated coverage of Super Micro Computer with an 'Outperform' rating and a $41 price target, driving a 16% stock surge on Tuesday.
• Super Micro announced a $20 billion multi-year partnership with Saudi Arabian data center firm DataVolt, further boosting shares by nearly 13% on Wednesday.
• The company holds 9% of the AI platform market and 31% of the branded server supplier market, positioning it as a leader in AI infrastructure.
• Despite past earnings volatility and governance concerns, Super Micro trades at a forward P/E of 13.9x, below the S&P 500’s 21.3x, appealing to value-focused investors.
• The DataVolt deal underscores Super Micro’s strategic role in advancing AI-driven data centers, leveraging U.S. manufacturing and Saudi Arabia’s renewable energy initiatives.