Super Micro Computer (NASDAQ:SMCI), a modular server and storage solutions provider, closed Thursday at $32.16, up 8.25%. The stock moved higher after analyst upgrades, institutional buying disclosures, and reports of a potential “Make in India” AI server expansion. Investors will be watching how these initiatives sustain AI-driven growth.
The company’s trading volume reached 42.1 million shares, which is roughly 47% above compared with its three-month average of 28.6 million shares. Super Micro Computer went public in 2007 and has grown 3572% since going its IPO.
S&P 500 (SNPINDEX: ^GSPC) slipped 0.28% to 6,861.89, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 0.31% to 22,683. Among computer hardware peers, Hewlett Packard Enterprise (NYSE:HPE) closed at $21.39 (-0.74%) and Dell Technologies (NYSE:DELL) finished at $119.06 (+1.95%), reflecting mixed sentiment across server and PC vendors.
Record AI-driven revenue fueled Super Micro Computer’s rally. Earlier this month, the company reported $12.68 billion in quarterly net sales and $400.56 million in net income, with over 90% of revenue from AI platforms. The company also raised its full-year guidance to at least $40 billion. These results indicate that demand for AI servers remains strong and scalable.
A Seeking Alpha analyst upgraded the stock to “strong buy,” citing potential margin expansion from the Data Center Building Block Solutions platform. This upgrade shifted the focus from revenue growth to operating leverage, thus providing investors with a clearer path to sustained profitability. Investors will continue to monitor whether AI server demand and margin expansion can support the company’s higher revenue outlook in the coming quarters.
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