Loop Capital Maintains Buy Rating on Super Micro, Citing Nvidia Collaboration

Loop Capital reiterated its Buy rating on Super Micro Computer (SMCI, Financials), citing the deployment of the NVIDIAS (NVDA, Financials) Blackwell architecture as a contributing factor to its positive outlook.

Loop Capital increased its price target for SMCI from $35 to $40, but saw possible challenges in early 2025 due to Tier 2 client buying patterns and delays in GB 200 allocation.

A developer of storage and server solutions for high-performance data centers, Super Micro has recently experienced market volatility. From a record high of $118 in March to $18 in November, the company’s shares fell dramatically in 2024 before showing a partial recovery.

The company is also tackling accounting issues that delayed the release of its quarterly financial report for the period ending September 30, 2024.

CEO Charles Liang highlighted November Micro’s growing proficiency in implementing liquid-cooled artificial intelligence data centers, including a recent project with 100,000 GPUs working with NVIDIA.

Key Super Micro Client Coreweave wants to increase the amount of data centers from 30 in 2024 to 60 in 2025. Analyst Ananda Baruah called this a major increase that would boost demand for liquid cooling on hopper and GB200-based systems / 300.

Loop Capital Hopes for Super Micro’s Long-Term Potential Despite Volatility and Hurdles; He attributes future expansion on developments in AI technology and alliances with more companies like NVIDIA.

This article first appeared on Gurufocus.