The stock of Super Micro Computer (NASDAQ: SMCI) is rallying in Thursday’s trading. The share price was up 5.9% as of 12:30 p.m. ET today, according to data from S&P Global Market Intelligence.
Super Micro is gaining ground today thanks to bullish news for Nvidia. In addition to positive coverage for the chipmaker from an analyst, it was also announced that a new partner had joined Nvidia’s machine-vision platform.
Nvidia gives Super Micro another boost
Movements for Nvidia’s share price often have ripple effects for other companies in artificial intelligence (AI). Shares of the leader in graphics processing units (GPUs) were up 1.7% as of 12:30 p.m. today, and the bullish momentum was lifting Super Micro and other high-profile AI stocks.
In a research note by Tigress Financial’s Ivan Feinseth yesterday, the analyst maintained a buy rating on Nvidia and raised his one-year price target from $790 per share to $985. And Rail Vision announced that it’s joining Nvidia’s Metropolis machine-vision platform to advance the safety and efficiency of rail travel.
What’s next for Super Micro Computer stock?
At least in the short term, Super Micro stock will likely continue to make moves in conjunction with shifts for Nvidia. Super Micro uses Nvidia’s GPUs for its high-performance rack servers.
Super Micro’s long-term stock performance will mostly be shaped by its own business results. The good news for investors is that the company is serving up great results and looks poised to benefit from sustained demand tailwinds.
If Super Micro hits the midpoint of management’s guidance target for revenue of approximately $14.5 billion this year, sales will be up roughly 104% annually, and there’s a good chance rapid expansion will continue from there.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Super Micro Computer. The Motley Fool has a disclosure policy.
Why Super Micro Computer Stock Is Surging Today was originally published by The Motley Fool
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