Super Micro Stock Poised To Build On Gains Amid Ongoing AI Momentum: Retail’s Uber-Bullish

Super Micro Computer, Inc. (SMCI) was the top trending ticker on Stocktwits early Wednesday as the stock appears poised to extend its gains from Tuesday.

The Super Micro stock was over 8% in Wednesday’s early premarket session after it added a solid 16% in the previous session. The stock was also among the top five active tickers on the platform.

If the rally is sustained in regular trading, the stock will remain on track to break above the $40 psychological resistance for the first time in nearly two months.

A tamer inflation report set Tuesday’s rally in motion, with a bullish analyst note adding to the momentum.

Raymond James initiated coverage of the Super Micro stock with an ‘Outperform’ rating and a $41 price target, The Fly reported. The firm said Super Micro has emerged as a leader in artificial intelligence (AI)- optimized infrastructure. 

The firm noted that AI platforms make up nearly 70% of Super Micro’s revenue. The company’s share of the branded AI server market has also been expanded, he added.

Raymond James opined that Super Micro has positioned itself in a sweet spot between the branded IT suppliers, such as Dell (DELL) and HP Enterprises (HP), and contract manufacturers, such as Quanta.

Also, on Tuesday, DataVolt, a leading Saudi Arabian data center company, announced signing a multi-year partnership agreement with Super Micro, valued at $20 billion.

Separately, Super Micro announced on Tuesday that it shipped several servers powered by AMD’s (AMD) EPYC 4000 series CPUs, the AMD EPYC 4005 Series processors. The company also noted that its servers will now feature MicroCloud multi-node solution, a 10-node CPU and a 5-node CPU + GPU version, in a 3U form factor.

On Stocktwits, retail sentiment toward the Super Micro stock was ‘extremely bullish’ (78/100) by early Wednesday, with the message volume at ‘high’ levels.

Super Micro stock, which came under pressure following the tariff announcement and subpar third-quarter results, has reversed course along with the broader market since Monday. 

A watcher braced for a bull run in the stock.

Another user said the stock could be undervalued considering the AI opportunity and revenue potential.

The stock is up about 28% year-to-date, although it is trading well off its all-time high of $120.90, hit in March 2024, before a series of headwinds, including accounting issues and delisting fears, dragged it lower.

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