Supermicro's AI-Driven Growth: Stock Volatility, Liquid Cooling Innovation, and Market Position

Supermicro Leads S&P 500 as AI Stocks Rise

The server maker's stock closed 11% higher at $40.84, marking the latest big swing in a stretch of volatility. Supermicro's shares rocketed last month after the company avoided possible delisting by submitting delayed financial reports, but the stock has fallen 10% in the weeks since even when Tuesday's gains are accounted for. Supermicro and other AI companies outperformed the broader market, which experienced a turbulent session amid political and economic uncertainty and ended lower. Shares of Supermicro partner Nvidia (NVDA) ended the day higher, as did chip designer Broadcom (AVGO) and AI analytics provider Palantir (PLTR). Supermicro stock has risen by about a third in 2025, but it's still worth more than 60% less than it was a year ago. The company is a "show-me story" for analysts at Rosenblatt, which according to MarketWatch recently resumed coverage with a "buy" rating and $60 price target. Its share price could continue to rise if the company meets revenue projections and "as long as there are no more delayed filings," the analysts reportedly said.

Watch These Supermicro Price Levels as Stock's Wild Swings Continue

Super Micro Computer (SMCI) shares are likely to remain in the spotlight after surging 11% Tuesday as investors sought buying opportunities in leading AI stocks after a dramatic sell-off to start the week. Sentiment in the stock also received a boost following a price target hike from analyst Kevin Cassidy at Rosenblatt Securities, who pointed out, according to Barron's, that the company's AI revenue comprised nearly 70% of total sales and continued to accelerate. Tuesday's gains add to a recent run of volatility in the server maker's shares after the company last month avoided a possible delisting by submitting delayed financial reports following a number of high-profile accounting and corporate governance challenges. Supermicro shares have risen 34% so far in 2025, with the lion's shares of those gains coming in February. The stock remains more than 60% below where it was trading 12 months ago as of Tuesday's close. Below, we break down Supermicro's chart and use technical analysis to locate key price levels that investors may be monitoring. After breaking out from a falling wedge pattern in early February, Supermicro shares staged a strong rally above the 200-day moving average (MA) before retracing to the 50-day MA. More recently, the stock broke out from a pennant pattern in Tuesday's trading session on the highest volume in a week, potentially setting the stage for further gains. Meanwhile, the relative strength index (RSI) confirms improving price momentum, with the indicator moving back above the key 50 threshold. Let's point out three key overhead areas on Supermicro's chart worth watching and also identify a few crucial support levels to eye upon a possible reversal. Supermicro shares closed Tuesday's regular session at $40.84. An initial move higher could see the shares climb to around $48, a location where the stock may find overhead resistance near the August swing low and a series of peaks that formed on the chart between September and December. Buying above this level may propel a move to the $63 area. Investors who have accumulated shares at lower prices may look for exit points here near the stock's prominent August and February peaks. The next higher overhead area to monitor sits around $75. This location could attract selling pressure near a horizontal line that connects a range of troughs on the chart from February to June last year. Interestingly, this area also sits just below a projected bars pattern target that takes the stock's impulsive move higher through most of February and repositions it from the pennant pattern's breakout area. Upon a move lower, investors should initially eye the $38 level near the pennant pattern's top trendline and a range of comparable price points on the chart stretching back to the early-September swing low. A decisive breakdown below this crucial region could act as a catalyst for a potential reversal. Finally, further selling could see Supermicro shares retrace to around $26. Investors may seek buying opportunities in this area near last month's low, which also closely aligns with the stock's early-November countertrend peak. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Supermicro's AI Boom, Liquid Cooling Edge Spark Analyst Confidence In Growth Potential - Super Micro Computer (NASDAQ:SMCI)

Rosenblatt analyst Kevin Cassidy reinstated coverage on Super Micro Computer SMCI with a Buy and a $60 price target. Supermicro is a leading provider of customizable, high-performance, energy-efficient server and storage solutions, catering to the rapidly growing demands of AI, cloud, enterprise, and edge computing. Focusing on innovation, security, and global manufacturing expansion, the company is well-positioned to capitalize on industry trends. Also Read: Applied Materials Hikes Dividend For 8th Year, Greenlights $10 Billion Buyback to Reward Investors By investing in cutting-edge technologies, supply chain diversification, and cost optimization, Supermicro strengthens its competitive edge in the evolving IT infrastructure landscape. Supermicro has benefited from the emerging importance of generative AI themes as investors have started to appreciate the company's inherent innovation, design, deployment, and manufacturing scale capabilities, the analyst says. AI revenues are now nearly 70% of sales and are accelerating, with visibility increasing to 1-2 years. Supermicro's long history in "Green" computing, building block architecture (BBA), plug-and-play, Twin architecture, rack-scale integration, and S/W platform optimization has resulted in a formidable business model aligned with the critical factors for success in an AI-driven world where time-to-market, TCO optimization, scale, and reliability are of the utmost importance, according to the analyst. Cassidy noted the company's ability to deliver liquid cooling at scale as a competitive advantage. Given the complexity, expense, and reliability concerns (leaks or droplets), liquid cooling at scale has been quite difficult to deploy. At scale, Supermicro's liquid cooling technology can increase rack compute power by over 2 times, which the analyst noted as a disruptive dynamic in a power-constrained data center. Cassidy modeled fiscal 2025 sales of $24.3 billion (+62% Y/Y), adjusted gross margins of 12.3%, and adjusted EPS of $2.63. This is versus the consensus of $24.1 billion (+61% Y/Y), 12.3%, and $2.63. The analyst modeled fiscal 2026 sales of $33.0 billion (+36% Y/Y), adjusted gross margins of 12.6%, and adjusted EPS of $3.82. This is versus the consensus of $33.2 billion (+38% Y/Y), 12.2%, and $3.68. He modeled fiscal 2027 sales of $39.0 billion (+18% Y/Y), adjusted gross margins of 14.3%, and adjusted EPS of $5.02. This is versus the consensus of $39.3 billion (+18% Y/Y), 15.5%, and $4.52. With server sales typically a 15%-30% gross margin business, Cassidy noted that Supermicro could improve its gross margins as it ships solutions to more Enterprise customers. Price Action: SMCI stock is down 1.39% at $37.71 at last check Monday. Also Read: ServiceNow Eyes $3 Billion AI Deal, Targets Boost From Moveworks Chatbot Tech Photo: Shutterstock SMCISuper Micro Computer Inc$37.61-1.65%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum12.95Growth84.19Quality98.37Value68.73Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Super Micro Computer's Liquid-Cooling Technology Increases Rack Compute Power By Over 2X, Claims An Analyst

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. Super Micro Computer (NASDAQ: SMCI), a prominent retailer of servers and AI racks, is widely considered a leader in liquid-cooling technology that has become an integral requirement for deploying servers in a dense configuration. Now, one analyst has crunched the numbers to quantify just how critical SMCI's liquid-cooling tech is to efficient rack computing. To wit, Rosenblatt analyst Kevin Casssidy has now resumed his coverage of Super Micro Computer with a 'Buy' rating and a 12-month stock price target of $60. To justify his prediction of a ~60 percent surge in Super Micro Computer's share price over the next 12 months, Cassidy notes that the company "has benefited from the emerging importance of generative AI themes as investors have started to appreciate the company's inherent innovation, design, deployment, and manufacturing scale capabilities." What's more, as per Cassidy's assessment, Super Micro Computer now draws a whopping 70 percent of its revenues from AI use-cases, highlighting the company's role as an effective proxy for the ongoing AI gold rush. The Rosenblatt analyst goes on to note: "Supermicro's long history in "Green" computing, building block architecture (BBA), plug-and-play, Twin architecture, rack scale integration, and S/W platform optimization have resulted in a formidable business model aligned with the critical factors for success in an AI-driven world where time-to-market, TCO optimization, scale, and reliability are of upmost importance." Critically, as mentioned earlier, Cassidy views SMCI's liquid-cooling tech as a "competitive advantage," especially due to the technology's inherent challenges, including "complexity, expense, and reliability concerns (leaks or droplets)." Finally, the analyst claims that Super Micro Computer's liquid-cooling technology can increase rack computing power by over 2x: "Supermicro's liquid cooling technology, at scale, can increase rack compute power by over 2x, which we see as a disruptive dynamic in a power-constrained data center." Of course, as we noted recently, Super Micro Computer shares have endured sizable weakness recently, not only in affinity with NVIDIA's share price plunge, but also due to its disappointing near-term guidance, which now entails fiscal Q3'25 (March-ending quarter) revenue of between $5 billion and $6 billion, corresponding to a QoQ decline of ~6 percent at the low-end, and a QoQ increase of ~12 percent at the high-end of the range. SMCI, however, was able to limit the fallout by aggressively ramping up its projections for FY 2026, now expecting to earn $40 billion in FY 2026 vs. Wall Street's previous consensus estimate of just $29 billion. Bear in mind that NVIDIA and CoreWeave are Super Micro Computer's biggest customers, while Dell is its biggest competitor.

Supermicro Taps Intel Chips To Power Real-Time AI At The Edge, Eyes Growth In IoT And Healthcare - Intel (NASDAQ:INTC), Super Micro Computer (NASDAQ:SMCI)

The new Benzinga Rankings show you exactly how stocks stack up -- scoring them across five key factors that matter most to investors. Every day, one stock rises to the top. Which one is leading today? On Tuesday, Super Micro Computer, Inc SMCI introduced a wide range of systems fully optimized for edge and embedded workloads. Several of these new compact servers, based on the latest Intel Corp INTC Xeon 6 SoC processor family (formerly codenamed Granite Rapids-D), empower businesses to optimize real-time AI inferencing and enable smarter applications across many key industries. CEO Charles Liang noted that as the demand for Edge AI solutions grows, businesses need highly reliable, compact systems that can process data at the edge in real-time. Also Read: Asana Growth Materially Lags Peers, JP Morgan Cuts Price Forecast The company's latest edge server generation delivers advanced AI capabilities for enhanced efficiency and decision-making and is fully optimized for workloads such as Edge AI, telecom, networking, and CDN, Liang added. Supermicro's new SYS-112D series systems help to run high-performance Edge AI solutions and feature the recently launched Intel Xeon 6 SoC with P-cores. These servers feature increased performance, improved performance per watt, and higher memory bandwidth compared to previous generations of systems. Supermicro's SYS-112D-36C-FN3P features the Intel Xeon 6 SoC. It is ideal for Edge AI and media workloads. Its chassis can easily be deployed in space-constrained environments or embedded in larger systems. Another server based on the same platform, the SYS-112D-42C-FN8P, provides a more telco-optimized configuration. Supermicro is also introducing two new compact systems, the SYS-E201-14AR and SYS-E300-14AR, which are optimized for IoT and AI inferencing at the far edge. Both systems feature the 15th Gen Intel CoreTM Ultra processors (codenamed Arrow Lake). The SYS-E300 enables the system to expand its performance for Edge AI applications in security and surveillance, retail, healthcare, manufacturing, and more. Supermicro's edge AI systems in the edge data center can install the recently launched Intel Xeon 6700 and 6500 series processors with P-cores. Rosenblatt analyst Kevin Cassidy reinstated coverage on Supermicro, citing its liquid cooling at scale and AI-ready systems as major drivers of long-term growth and gross margin upside. Supermicro's AI revenues are now nearly 70% of sales and are accelerating, with visibility increasing to 1-2 years. Price Action: SMCI stock is up 7.20% at $43.78 premarket at last check Wednesday. Also Read: Advanced Micro Devices Unleashes AI-Focused Chips Powered By 'Zen5' Core Architecture Photo by CryptoFX via Shutterstock INTCIntel Corp $20.855.41% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum18.08 Growth80.73 Quality- Value73.00 Price Trend Short Medium Long Overview SMCISuper Micro Computer Inc $42.253.45% Market News and Data brought to you by Benzinga APIs

What's Going On With Super Micro Computer Shares Wednesday? - Super Micro Computer (NASDAQ:SMCI)

Super Micro Computer, Inc. SMCI stock is trading higher on Wednesday after the company unveiled new Intel Xeon 6-Powered servers. The Details: The servers are designed to enhance AI performance and efficiency at the edge, featuring over 40% more memory bandwidth and up to 144 CPU cores. "As the demand for Edge AI solutions grows, businesses need highly reliable, compact systems that can process data at the edge in real-time," said Charles Liang, president and CEO of Supermicro. "Our latest generation of edge servers deliver advanced AI capabilities for enhanced efficiency and decision-making close to where the data is generated. With up to 2.5 times core count increase at the edge with improved performance per watt and per core, these new Supermicro compact systems are fully optimized for workloads such as Edge AI, telecom, networking, and CDN." Related Link: Gilead Presents New HIV Treatment And Cure Research Data SMCI Price Action: At the time of writing, Super Micro stock is trading 5.17% higher at $42.97, according to data from Benzinga Pro. Image: Image via Shutterstock SMCISuper Micro Computer Inc$42.925.09%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum14.39Growth84.32Quality98.34Value66.94Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

3 ETFs With Super Micro Computers Exposure, Enjoy AI Surge - Super Micro Computer (NASDAQ:SMCI)

Find out which stock just claimed the top spot in the new Benzinga Rankings. Updated daily -- discover the market's highest-rated stocks now. Super Micro Computers SMCI -- a top player in the AI infrastructure space -- has seen its shares draw investors' attention. In tandem with the rise in the share price, some exchange-traded funds, or ETFs, may benefit from having exposure to Super Micro. Investors looking to cash in on Supermicro's AI-driven growth can consider the following ETFs: VanEck Semiconductor ETF SMH: This fund focuses on semiconductor giants like Nvidia NVDA, which directly benefits from Super Micro's AI server demand. As SMCI integrates more Nvidia Blackwell GPUs into its systems, both companies stand to gain. Global X Robotics & Artificial Intelligence ETF BOTZ: This fund focuses on AI, automation, and robotics stocks, such as those working in AI inferencing and edge computing. Super Micro's strong, compact AI systems and enterprise AI clusters can power growth for this ETF. iShares Expanded Tech-Software Sector ETF IGV: This fund choosing software-based AI firms, such as cloud computing and HPC companies reliant on Super Micro's AI platform. An increased AI-driven demand might pull IGV up indirectly. Also Read: 10 Analysts Have This To Say About Super Micro Computer Supermicro's AI Expansion: Super Micro has recently made an AI infrastructure move with Eviden to distribute its AI SuperCluster with NVIDIA GB200 NVL72 throughout Europe, India, the Middle East, and South America. This high-end AI system comes with 36 NVIDIA Grace CPUs and 72 Blackwell GPUs. It's designed for training and inferencing trillion-parameter AI models, which is one of the primary requirements for AI-centric businesses. Aside from that, Supermicro is venturing into real-time AI inferencing with its new edge computing solutions. Supermicro has launched new small form-factor AI systems based on the new Intel Xeon 6 SoC (Granite Rapids-D) and 15th Gen Intel Core Ultra processors featuring integrated Neural Processing Units (NPUs) for AI acceleration. Cautious Optimism: Despite its technological advancements, Wall Street remains cautious about Super Micro due to regulatory compliance problems, such as delayed filings. But Rosenblatt Securities has resumed coverage with a buy rating and a $60 price target, indicating renewed optimism, Market Watch said. Analyst Kevin Cassidy is looking for an increase in the company's price-to-earnings multiple as Super Micro "hits its revenue targets and gross margins expand, as long as there are no more delayed filings." As Super Micro keeps expanding into AI, its position in enterprise AI, edge computing, and AI server infrastructure places it at the forefront of the AI revolution. Investors who want to ride this AI growth can tap into ETFs such as SMH, BOTZ, and IGV, which offer diversified exposure to Super Micro's rally and the overall AI hardware market. Read Next: Smart ETF Picks For A Cooling Inflation Era Image: Shutterstock SMCISuper Micro Computer Inc $39.83-6.22% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum14.02 Growth84.25 Quality98.35 Value66.33 Price Trend Short Medium Long Overview BOTZGlobal X Robotics & Artificial Intelligence ETF $29.82-2.55% IGViShares Expanded Tech-Software Sector ETF $88.28-3.34% NVDANVIDIA Corp $115.35-0.34% SMHVanEck Semiconductor ETF $220.840.15% Market News and Data brought to you by Benzinga APIs

Why Super Micro Computer Stock Is Soaring Today | The Motley Fool

Super Micro Computer (SMCI 3.94%) stock is surging in Wednesday's trading thanks to multiple bullish catalysts. The company's share price was up 5.6% as of 3:30 p.m. ET and had been up as much as 10.2% earlier in trading. Supermicro stock is seeing an uptick in bullish momentum following the latest inflation data from the Bureau of Labor Statistics. The server specialist's valuation is also getting a boost from the company's new cybersecurity partnership and a report that Nvidia and other semiconductor leaders could be teaming up to purchase Intel's chip foundry business. In addition to bullish momentum for the broader market spurred by lower-than-anticipated inflation, Supermicro stock is getting a boost from a new cybersecurity initiative. The company published a joint press release with Exein this morning announcing that the two companies had entered into a new technology partnership. Through the team-up, Exein will incorporate its embedded security solutions into Supermicro's hardware. Exein's artificial intelligence (AI) technologies will be built into Supermicro's servers to minimize security risks for edge computing, Internet of Things, and infrastructure services. A new report surfaced today indicating that Nvidia, Taiwan Semiconductor Manufacturing, Advanced Micro Devices, and Broadcom were looking into purchasing Intel's chip fabrication business through a joint venture. While Intel's foundry business has been struggling, the ability to fabricate advanced chip designs for AI and other purposes within the U.S. is taking on added significance in light of concerns that China could exert more control over Taiwan in the coming years. Supermicro relies on Nvidia's advanced processors as the key hardware component in its high-performance rack servers, and Nvidia relies on Taiwan Semiconductor Manufacturing to manufacture its chip designs. Improving domestic semiconductor fabrication capabilities would be a major positive development for Nvidia and Supermicro because it would reduce geopolitical risk factors.