Super Micro's Stock Keeps Rising. Here’s What Might Come Next

President Donald Trump appears to be staging a comeback this week, with the White House making a series of favorable announcements related to tariffs and substantial investments in artificial intelligence. These moves have been well-received by investors, particularly those focused on AI, and are contributing to a rebound in several AI-linked stocks—Super Micro Computer Inc. being one of the most notable beneficiaries.

‍

On Tuesday, the White House revealed that Saudi Arabia will be making a number of high-profile investments in the U.S., including a major commitment from Saudi company DataVolt. DataVolt plans to invest $20 billion in AI-focused data center and energy infrastructure projects across the United States. This announcement is part of a broader effort involving both Saudi and American firms aimed at accelerating technological innovation.

‍

The investment consortium also includes prominent U.S. technology companies such as Alphabet Inc. (Google's parent company), Oracle Corp., Salesforce Inc., Advanced Micro Devices Inc. (AMD), and Uber Technologies Inc. Collectively, these companies have pledged to invest a total of $80 billion toward the development of advanced technologies in both the U.S. and Saudi Arabia, according to the White House.

‍

These announcements helped boost Super Micro shares significantly. The stock surged more than 16% on Tuesday to close at $38.89 and continued its rally in premarket trading on Wednesday, rising another 17%. Investors appear optimistic about Super Micro’s role in supporting the AI infrastructure buildout.

‍

Specifically, the company is expected to provide servers designed to house GPUs—graphics processing units—that are central to AI computing. Gil Luria, head of tech research at D.A. Davidson, commented that investors see Super Micro as a key supplier for the next wave of AI data center growth.

‍

Just a few weeks ago, Super Micro’s stock faced headwinds. In late April, the company released preliminary earnings that fell short of Wall Street expectations, attributing the miss to delays by customers in making purchasing decisions. That disappointing update was followed by a downward revision in the company’s revenue guidance last week, which initially put pressure on the stock.

‍

Despite these recent setbacks, analysts are beginning to warm back up to the company. On May 12, Raymond James initiated coverage of Super Micro with an “outperform” rating and set a base-case price target of $41.

‍

This projection was slightly under the average price target of $41.08 from analysts surveyed by FactSet. Following Tuesday’s strong performance, Raymond James Managing Director Simon Leopold reaffirmed the firm’s price target in comments to MarketWatch. He acknowledged that while the company’s recent earnings miss had negatively impacted its valuation and reputation, the long-term opportunity in AI infrastructure could outweigh those concerns.

‍

On Wednesday morning, Super Micro’s shares were trading around $45 in premarket activity—well above the average analyst price target. Since most brokerage analysts provide 12-month price outlooks, the current trading price could suggest limited upside for short-term investors. Still, some on Wall Street remain bullish: four of the 15 analysts tracked by FactSet have set price targets of $50 or higher.

‍

Raymond James’ analysis highlights that Super Micro has significantly increased its market share and now derives around 70% of its revenue from AI-related platforms.

‍

The firm describes Super Micro as a leader in AI-optimized infrastructure, which gives it a strategic edge as demand for such systems continues to grow. However, risks remain. The company faces medium-term challenges, including the potential reimplementation of tariffs and changes in preferred technology standards.

‍

The analysts at Raymond James also emphasize the importance of Super Micro’s ability to secure large-scale contracts, which could fuel further expansion. Given the uncertainty surrounding tariffs, customer buying behavior, and technology transitions, they outlined a wide range of possible stock outcomes. Their bear-case scenario pegs the stock at $23, while their bull-case scenario envisions a price as high as $88.

‍

In summary, while Super Micro has faced recent turbulence due to earnings-related disappointments, the latest AI investment announcements—especially those involving Saudi partnerships—have sparked renewed investor optimism. The company is seen as well-positioned to benefit from the AI data center boom, although it must navigate a complex landscape filled with both opportunity and risk.

‍