Super Micro Computer Inc (NASDAQ:SMCI) is well set to take advantage of the growing AI server market, analysts at the Bank of America believe.
As the group continues to put in place additional capacity to support the increased demand and revenue experts at the US bank have upgraded it share price target.
Bank of America now reckons the tech firm’s shares will reach US$1,280 instead of falling to US$1,040, representing close to a 15% premium to its current market value.
The broker believes the industry will see revenues grow from around US$39 billion in 2023 to US$200 billion in 2027.
“SMCI's competitive advantages include building block architecture which helps to quickly incorporate new technology and reduce time to market and relationship with leading AI CPU/GPU/ASIC providers including Intel, Nvidia, and AMD,” the US bank said.
Analysts also pointed to the group’s “ability to customize configurations to specific customer applications and its liquid cooling offerings.”
Bank of America reiterates its ‘buy’ rating for the stock and expects 2025 revenues to reach US$25.2 billion, with earnings per share of US$35.66.