Super Micro re-initiated with a Buy at Rosenblatt

Rosenblatt analyst Kevin Cassidy re-initiated coverage of Super Micro (SMCI) with a Buy rating and $60 price target Super Micro is a leading system server artificial intelligence provider in the cloud, enterprise, and telecom market segments. The firm says the company’s AI revenues are now nearly 70% of sales and are accelerating. Rosenblatt views Super Micro’s ability to deliver liquid cooling at scale as a competitive advantage, saying liquid cooling at scale has been difficult to deploy given the complexity, expense, and reliability concerns. It points out Super Micro’s liquid cooling technology, at scale, can increase rack compute power by over two-times, which is a “disruptive dynamic in a power constrained data center.”