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%.Jim Cramer Says He’s ‘Sick Of’ Super Micro Computer (SMCI)- Prefers Dell Instead

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.

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