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Investment Bank Sparks Rally by Super Micro Computer, Inc. (SMCI) With Bullish Note

Investment bank Raymond James yesterday started coverage of server maker Super Micro Computer, Inc. (SMCI) with a price target of $41 and an Outperform rating on the shares.

Between the market close on Monday and late morning trading on Wednesday, the shares soared 34%.

A team of technicians in a server room, testing and managing the newest server solutions.

Super Micro Computer, Inc. (SMCI) is well-positioned to continue to benefit from the AI Revolution, Raymond James believes.

A Top Player in the AI Hardware Space

SMCI is one of the foremost makers of hardware for AI, and its market share in the AI server market has risen, the investment bank noted.

The company, which excels at creating customized, highly effective products, now has 9% of the total AI platform market, Raymond James stated.

And Super Micro Computer, Inc. (SMCI) is becoming a “near AI pure play,” as 70% of its sales are generated by products related to AI, Raymond James reported.

Additionally, the firm has found an effective niche between the largest server makers, such as Dell (DELL) and Hewlett-Packard Enterprise (HPE), on the one hand and discount players on the other.

Upcoming, Positive Catalysts for SMCI

In addition to the growth of AI, Raymond James believes that Super Micro Computer, Inc. (SMCI) can get a lift from increased sales in certain sectors, its increased output of liquid-cooled AI racks, and higher sales of chips by its partner,  Nvidia (NVDA).

While we acknowledge the potential of SMCI, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SMCI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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