30 AI News Investors Should Not Miss

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

Number of Hedge Fund Holders: 47 

Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. Needham recently initiated coverage of the stock with a Buy rating and $600 price target. The advisory viewed Super Micro Computer, Inc. (NASDAQ:SMCI) as a first mover in the design of GPU-based compute systems and liquid cooled rack level solutions and a significant beneficiary from growing investment in AI infrastructure. Needham forecasted a compound annual revenue growth rate in excess of 55% from FY21 to FY26, though it added that it modeled a gross margin recovery that was more conservative than management’s forecast. However, the advisory noted the bear case that gross margin would trend towards the single digits was too pessimistic.

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