Amid AI boom, veteran analyst reboots AMD, Supermicro stock price targets
Some potential winners in the AI space could be companies that invest heavily in research and development, such as Google, Microsoft, and IBM. Additionally, startups with innovative AI solutions could disrupt the market and emerge as significant players. Government agencies that prioritize AI development may also see success in this rapidly evolving field. Overall, the winners in AI will likely be those who can adapt to changing technologies and consumer demands.
Nvidia vs AMD and Super Micro Computer in the AI Market
Nvidia (NVDA) stock typically hogs all the AI spotlight, but if you look at the bigger picture, two other names deserve a deeper look. AMD (AMD) and Super Micro Computer (SMCI) stock have been silently positioning themselves at the heart of AI’s next big upgrade cycle.
The former is pushing for new GPUs to hyperscalers, desperate for an alternative, while the latter is building the racks that make all that horsepower usable at scale.
AMD and Super Micro's Advances in AI
One thing is clear from recent weeks: Nvidia’s AI crown isn’t as untouchable as it looks on paper. AMD, in particular, has been showing that it isn’t content playing second fiddle. CEO Lisa Su recently dropped a bombshell at the company's big “Advancing AI” event, unveiling the new Instinct MI350 series. These powerful new GPUs are built to supercharge AI, delivering up to four times more compute performance and a 35× boost in inference. The top AI juggernauts in Meta, Microsoft, and OpenAI are already showing interest in these chips, indicating a demand for a serious Nvidia alternative.
While AMD fires up the accelerator race, Supermicro is locking down the racks to run them. Supermicro, traditionally known for motherboards and chassis, now considers itself a leading hyperscale AI systems powerhouse. A recent $20 billion deal with DataVolt showcases the demand for Supermicro’s liquid-cooled GPU racks, highlighting their importance in powering AI mega-centers.
Wall Street's Reaction to AMD and Super Micro's AI Advances
Mizuho’s latest bullish note shows how AMD and Supermicro offer strong upside for chipmakers looking to feed AI’s insatiable compute appetite. Mizuho analyst Vijay Rakesh raised his price targets for both AMD and Supermicro, indicating a positive outlook for their future in the AI market.
Rakesh's bullish outlook on AMD stock is backed by the company's new Instinct series and open-standard hardware, which are gaining traction among hyperscalers seeking alternatives to Nvidia. While near-term numbers remain mostly unchanged, the long-term potential of AMD’s high-end AI chips is promising.
For Supermicro, Rakesh sees a bright future with significant demand for AI servers. The Saudi Arabia DataVolt deal and increasing shipments for liquid-cooled GPUs point to a prosperous road ahead for the company in the AI market.