According to Barclays, Supermicro could benefit from the hype around artificial intelligence. The company initiated coverage of the information technology company on Tuesday with an overweight rating and a price target of $327 per share. Barclays’ forecast implies an increase of almost 34% from Monday’s closing price of $244.30. Meanwhile, shares of Supermicro are already up 198% since the start of the year. SMCI YTD mountain Super Micro Computer stock. Analyst George Wang noted that Supermicro is in an advantageous position when it comes to emerging artificial intelligence capabilities. “Given the compelling AI investment trend, we believe that SMCI’s robust AI server offering will enable the company to capture the increasing opportunities in this area, leading to strong revenue growth in the coming years,” said Wang. The analyst noted that AI inference, the process by which a trained neural network model makes predictions, already accounted for 52% of the company’s revenue in the second quarter. He states that this number could grow to 70% by 2024 and more than 80% by 2025. “We model SMCI’s revenue growth at 17% in FY25, following 46% growth in FY24, in line with IDC figures . [International Data Corporation] predicting a CAGR of 17% [compounded annual growth rate] in 2021-2026E for AI server revenue growth,” Wang said. – CNBC’s Michael Bloom contributed to this report.
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