Super Micro Computer (NASDAQ:SMCI) is still getting bullish backing from Loop Capital, which reiterated its Buy rating and raised its price target to $40 on expectations of Nvidia’s (NVDA) Blackwell ramp.Super Micro, known for its high-performance data center solutions, has the capacity to deploy large-scale, liquid-cooled AI projects, including those with 100,000 GPUs.
Loop analyst Ananda Baruah believes the company is well-positioned but warns the first half of 2025 could be bumpy until key Tier 2 customers receive their GB200 allocations around May or June. Super Micro’s stock has been volatile, hitting an all-time high of $118 in March 2024 before plunging to $18 by November following accounting issues and a short report from Hindenburg Research.
Shares have since rebounded, and Loop sees potential catalysts ahead, particularly with CoreWeave doubling its data centers to 60 in 2025.Loop expects a stronger second half of 2025, with Blackwell and liquid cooling solutions likely boosting demand as the year progresses.
This article first appeared on GuruFocus.
