What Happened?
Shares of server solutions provider Super Micro (NASDAQ:SMCI) jumped 17.7% in the morning session after the company announced shipments of high-density servers powered by AMD's EPYC 4005 processors and revealed a $20 billion multi-year partnership with Saudi data center firm DataVolt. The deal aims to accelerate delivery of GPU platforms for hyperscale AI campuses in Saudi Arabia and the U.S.
Additionally, broader market optimism followed President Trump's announcement of eased U.S.-China tariffs and major tech investment commitments during his Middle East tour.
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What The Market Is Telling Us
Super Micro’s shares are extremely volatile and have had 91 moves greater than 5% over the last year. But moves this big are rare even for Super Micro and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was about 22 hours ago when the stock gained 15.8% on the news that Raymond James analysts initiated coverage of the stock with a Buy rating and a price target of $41. The analysts called out SMCI's leadership in "AI-optimized infrastructure," noting that artificial-intelligence platforms represented approximately 70% of the company's sales.
Super Micro is up 53.2% since the beginning of the year, but at $46.03 per share, it is still trading 51.7% below its 52-week high of $95.24 from May 2024. Investors who bought $1,000 worth of Super Micro’s shares 5 years ago would now be looking at an investment worth $19,716.
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