Super Micro Computer (SMCI, Financials) is back in the spotlight. The stock surged 15% Tuesday after Raymond James told clients it’s time to buy — calling the server maker a top name in AI infrastructure and setting a price target of $41.
Raymond James said Supermicro has carved out a solid spot in the AI arms race, controlling about 9% of a $145 billion market. That puts it ahead of other branded server vendors, according to research firm Dell’Oro.
It’s welcome news for investors, who’ve had a bumpy ride. SMCI shares are still down more than 50% over the past year, after a string of lowered forecasts, missed expectations, and questions around the company’s accounting.
Earlier this month, Supermicro reduced its sales outlook, blaming slower spending and delayed buying decisions from customers unsure about the economic landscape. Other analysts followed with price target cuts.
And in February, things nearly got worse. The company risked being kicked off the exchange for delayed financials — but it filed just in time to stay listed.
Still, Raymond James thinks the story isn’t over. The firm believes Supermicro’s role in powering AI systems gives it a long runway — if it can execute.
Investors now have a choice: bet on a comeback, or wait to see if this rally has real staying power.
