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Super Micro Computer Inc. (SMCI), a key player in AI-driven data centers, reported robust sales of its liquid cooling solutions and server systems, offering relief to investors after a tough year.

Shares of the California-based company surged 15% on Monday, as the AI-driven stock continues to rebound despite earlier setbacks.

Supermicro stock still carries risk

Despite the promising outlook, Supermicro’s stock remains risky, especially amid rumors of a potential federal investigation.

However, many market analysts believe the stock will recover over time.

Louis Navellier of Navellier & Associates recently highlighted that Supermicro is trading at a reasonable forward price-to-earnings (P/E) ratio of 12, suggesting the stock is not overvalued despite recent volatility.

Super Micro also benefits from strong long-term growth trends in the AI and data center markets.

Statista projects that the global AI market will reach $1.0 trillion by 2030 and SMCI is well-positioned to capitalize on this expansion.

CEO Charles Liang noted in a press release that Supermicro’s liquid cooling solutions are helping reduce costs and improve performance in large-scale AI factories, with deployment times measured in weeks rather than months.

Wall Street’s verdict on Supermicro stock

Wall Street analysts remain bullish on Supermicro, with a consensus price target of $69—implying another 45% upside from current levels.

As AI-driven demand for data centers continues to surge, Supermicro’s innovative solutions and strategic positioning could make it a key player in the sector’s growth.

However, investors should remain cautious given ongoing risks and regulatory concerns.

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