Super Micro Computer (SMCI.US) shares jumped 15% to $44.7, extending Tuesday's 16% rally following a series of positive developments for the AI server maker.
The steep ascent was primarily fueled by a newly announced $20 billion multi-year partnership with Saudi Arabian data center company DataVolt. The agreement aims to "fast-track delivery of ultra-dense GPU platforms and rack systems for DataVolt's hyperscale AI campuses in the Kingdom of Saudi Arabia and the US," according to a statement from the companies.
"We are excited to partner with DataVolt and continue expanding our manufacturing efforts in the United States," said Super Micro President and Chief Executive Charles Liang.
The deal comes amid President Trump's four-day Middle East visit, during which he secured $300 billion in agreements with Saudi Arabia on the first day alone, with plans to double that amount within four years. In a related development, several tech giants including Google, Oracle, Salesforce, AMD, Uber Technologies, and DataVolt announced plans to invest $80 billion in "cutting-edge transformative technologies" across both countries.
Adding to Super Micro's momentum, Raymond James analysts initiated coverage of the stock with an Outperform rating and a $41 price target on Tuesday, describing the company as "a market leader in AI-optimized infrastructure" with "competitive pricing" compared to peers. The analysts acknowledged that while tariffs and technology transitions present intermediate-term challenges, they consider AI to be a long-term secular driver for the company.
SMCI (D1)
The stock is trading above the 23.6% Fibonacci retracement level and has broken above the 200-day SMA, signaling renewed bullish momentum. Bulls will likely aim to retest this year's highs around $57. Conversely, if the price fails to hold above the 200-day SMA, bears may attempt to push it lower toward the 30-day SMA, with a potential target around $33.70.
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