Supermicro could be set to take advantage of artificial intelligence hype, according to Barclays.
The firm initiated coverage of the information technology company on Tuesday with an overweight rating and a $327 per share price target.
Analyst George Wang noted that Supermicro is in an advantageous position when it comes to the emerging artificial intelligence opportunity.
The analyst noted that AI inferencing, which is the process of a trained neural network model making predictions, already made up 52% of the company's second-quarter revenue.
"We model SMCI's revenue growth at 17% in FY25 after 46% growth in FY24, consistent with IDC's [International Data Corporation] forecast of a 17% CAGR [compounded annual growth rate] in 2021-2026E for AI server revenue growth," Wang said.
Persons:
George Wang, Wang, — CNBC's Michael Bloom
Organizations:
Barclays, Computer, International Data Corporation