Super Micro Computer shares were choppy after Nvidia earnings. Here's where analysts see it going

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Super Micro Computer Inc,Technology,NVIDIA Corp

Super Micro's shares soared to a year-high in mid-March, but they have been volatile since then. Here's what analysts say about the stock's outlook.

Super Micro Computer emerged as an investor darling early this year, as Wall Street unearthed the stock, driving it higher with gains that rivalled even Nvidia's. The firm, which makes artificial intelligence systems and graphics processing unit servers, was the hot new AI play. Its fortunes are tied to Nvidia's, with which it has a partnership.

is headed BofA said in a May 23 note that the "biggest takeaway" from Nvidia's earnings was that demand for AI-related accelerated computing "remains strong," and is expanding beyond cloud service companies to consumer Internet companies and enterprise AI. "In our opinion, Supermicro stands to benefit from this growing demand," the bank said.

is a backdoor NVDA play although I own NVDA in even bigger size than . As you know, NVDA's guidance even stunned the bulls on that company/stock. is now trading @ just 25X next year's earnings for 40%+ earnings growth," he said via email. In a May 20 note, JPMorgan said it has an overweight rating on Super Micro. "Super Micro believes the industry is still in very early stages of the the investment cycle/ infrastructure upgrade cycle relative to AI, with investments starting to pick up in regions beyond United States, including in some cases investments by foreign sovereigns," JPMorgan analysts wrote.

 

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