Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Politics

Super Micro stock surges after Saudi deal, upbeat rating and AI optimism

admin by admin
May 14, 2025
in Politics
0
Super Micro stock surges after Saudi deal, upbeat rating and AI optimism
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Shares of Super Micro Computer rallied sharply in early trading Wednesday, extending gains from the previous session, as a combination of favourable analyst coverage, a multibillion-dollar AI infrastructure deal, and improved geopolitical sentiment lifted investor confidence in the server maker.

The stock opened more than 18% higher at $45.96, building on Tuesday’s 16% gain after news of a $20 billion partnership with Saudi-based data center company DataVolt.

SMCI’s AI deal with DataVolt boosts confidence

The company’s rapid ascent was driven in part by the announcement of a multi-year agreement with DataVolt to accelerate delivery of GPU platforms and rack systems for hyperscale AI campuses in Saudi Arabia and the US

The deal is estimated to be worth $20 billion, according to both firms.

The partnership was unveiled amid a four-day visit to the Middle East by US President Donald Trump, during which he signed a sweeping $300 billion deal with Saudi Arabia, with the stated goal of doubling that figure over the next four years.

The DataVolt-Super Micro pact aligns with a broader wave of AI and tech-focused investment from the Gulf state.

Analyst upgrade adds to momentum

Before the partnership was disclosed, analysts at Raymond James initiated coverage of Super Micro with an “Outperform” rating and a price target of $41.

The firm praised Super Micro’s position as “a market leader in AI-optimized infrastructure” and its competitive pricing.

Despite noting potential headwinds including tariffs and tech transitions, analysts highlighted artificial intelligence as a long-term growth driver.

Super Micro also announced that it had shipped a new range of high-density servers featuring Advanced Micro Devices’ latest EPYC 4005 series chips.

That development, coupled with growing interest in enterprise AI solutions, further boosted sentiment.

Stock rebounds but remains well off its highs

Despite the recent rally, Super Micro’s stock is still down more than 50% from its 52-week high, and nearly 63% off its record peak of $118.81 set in March 2024.

The company previously faced the threat of delisting from Nasdaq due to delayed financial filings and was flagged by auditor BDO for ineffective internal controls, casting a shadow over its reputation.

Raymond James acknowledged that reputational concerns may be suppressing the company’s valuation, but also emphasized that the firm’s fundamentals and strategic positioning in the AI server market are solid.

Chip sector sees broader gains during Trump’s Gulf visit

Super Micro’s rise was mirrored across the semiconductor space, as chipmakers such as Nvidia and AMD climbed around 3.3% each in premarket trade.

The rally followed announcements that Nvidia, AMD, and Qualcomm had signed agreements with Humain, a Saudi AI startup backed by the kingdom’s sovereign wealth fund.

President Trump’s visit to the Gulf region has so far resulted in commitments exceeding $600 billion from Saudi Arabia to US firms, fuelling hopes of an extended AI investment boom and closer tech cooperation between Washington and Riyadh.

The post Super Micro stock surges after Saudi deal, upbeat rating and AI optimism appeared first on Invezz

Previous Post

How billionaire Caltagirone could influence Italy’s banking M&A wave

Next Post

Best crypto to buy as Coinbase warms up to inclusion in the S&P 500

admin

admin

Next Post
Best crypto to buy as Coinbase warms up to inclusion in the S&P 500

Best crypto to buy as Coinbase warms up to inclusion in the S&P 500

Trending News

Interview: Non-US stablecoin issuers gaining appeal amid trade wars, says Quantoz Payments CEO Arnoud Star Busmann

Interview: Non-US stablecoin issuers gaining appeal amid trade wars, says Quantoz Payments CEO Arnoud Star Busmann

June 17, 2025
No-frills carrier Frontier reports bigger-than-expected Q3 loss, shares fall

No-frills carrier Frontier reports bigger-than-expected Q3 loss, shares fall

October 29, 2024
Wall Street bear Peter Berezin says US recession may already be underway: here’s what to sell and where to invest

Wall Street bear Peter Berezin says US recession may already be underway: here’s what to sell and where to invest

March 5, 2025
Subscribe to Insightful Word


    Recent News

    Asian markets close mixed amid lingering trade tensions; Nikkei hits 6-month high

    Asian markets close mixed amid lingering trade tensions; Nikkei hits 6-month high

    June 27, 2025
    Nike shares jump on improved outlook, shift from China; analysts see recovery

    Nike shares jump on improved outlook, shift from China; analysts see recovery

    June 27, 2025
    Dow Futures soar as Wall Street bulls charge toward record highs

    Dow Futures soar as Wall Street bulls charge toward record highs

    June 27, 2025
    Morningstar lifts Netflix target but warns shares remain overvalued

    Morningstar lifts Netflix target but warns shares remain overvalued

    June 27, 2025

    Recent News

    Asian markets close mixed amid lingering trade tensions; Nikkei hits 6-month high

    Asian markets close mixed amid lingering trade tensions; Nikkei hits 6-month high

    June 27, 2025
    Nike shares jump on improved outlook, shift from China; analysts see recovery

    Nike shares jump on improved outlook, shift from China; analysts see recovery

    June 27, 2025

    Latest News

    • Asian markets close mixed amid lingering trade tensions; Nikkei hits 6-month high
    • Nike shares jump on improved outlook, shift from China; analysts see recovery
    • Dow Futures soar as Wall Street bulls charge toward record highs

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.