Computer hardware manufacturer Super Micro Computer (SMCI) has started shipping its max-performance servers built for intensive tasks like artificial intelligence (AI) and high-performance computing at scale. These new systems are designed to handle demanding workloads efficiently.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
The X14 servers run on Intel’s (INTC) Xeon 6900 series processors, which can support up to 128 performance-focused cores per CPU. They also offer faster memory speeds (up to 8800 MT/s) and come with built-in AI accelerators to handle complex tasks. Each system can feature up to 256 performance cores and advanced memory and storage options to handle massive data with minimal delays.
To improve efficiency, Supermicro has developed its own liquid cooling solutions, which help keep CPUs, GPUs, and memory from overheating. These cooling systems include components like cold plates, hoses, and cooling towers, which make sure that the servers run smoothly even under heavy workloads.
Investor Sentiment for SMCI
It is no secret that SMCI has had a tough tie ever since it got targeted by short-seller Hindenburg Research. Therefore, it is not really a surprise to see that the sentiment among TipRanks investors is currently Neutral. However, what is surprising is that more portfolios are adding SMCI shares to their holdings. Indeed, out of the 771,351 portfolios tracked by TipRanks, 4.1% hold SMCI stock. This is actually an increase from August when 2.9% of portfolios held shares.
Is Super Micro Computer a Good Investment?
Turning to Wall Street, analysts have a Hold consensus rating on SMCI stock based on two Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 5% decline in its share price over the past year, the average SMCI price target of $38.57 per share implies 18.3% upside potential.
