14 AI Stocks Making Waves on Wall Street

11. Super Micro Computer, Inc. (NASDAQ:SMCI)

Number of Hedge Fund Holders: 33

Super Micro Computer, Inc. (NASDAQ:SMCI) develops and produces advanced server and storage systems, with a focus on AI, cloud technologies, and 5G applications. Lynx Equity maintained a $60 price target on SMCI, noting that the NVDA keynote at CES could serve as a positive catalyst. The firm commented:

“According to media reports, the NVDA keynote at CES today is expected to touch upon next-generation GB300, a platform that will likely require even more stringent cooling specifications than GB200.

A core element of our positive thesis on SMCI is our belief that the company has had a head-start in liquid-cooled technology over its peers, a position we believe it is in no danger of losing in the foreseeable future. Having stood on the sidelines of the nascent GB200 cycle so far, we believe SMCI could re-enter the Blackwell fray with the launch of GB300.”

The company is also positioned to benefit from AMD’s MI325X and Google’s TPU6, both of which require liquid cooling. However, there are concerns about SMCI’s ability to meet regulatory deadlines for financial filings and its need for additional liquidity. The firm further noted:

“While a need for fresh liquidity might concern some shareholders, we view it differently. We think a fresh infusion of liquidity is necessary to address its large inventory and free up working capital for the company’s capital-intensive AI server business. A debt-financed deal could be positive for common shares if the company remains relevant in the growing business of liquid-cooled data centers.

While volatility is likely over the next 6–12 months, we view the NVDA keynote at CES today as a positive catalyst. We reiterate our $60 price target.”