Super Micro Computer, Inc. (NASDAQ: SMCI) is making bold moves in the AI infrastructure space, following strong shareholder approval for a major incentive plan and fresh global partnerships aimed at dominating the next wave of AI growth.
At its June 4 annual shareholder meeting, SMCI secured approval to add 18 million shares to its 2020 Equity and Incentive Compensation Plan. This move is designed to attract and retain top AI talent, a critical step as competition in the AI hardware space intensifies.
Super Micro’s stock has also received positive momentum from Wall Street. Mizuho raised its price target to $40, and Loop Capital maintained its “Buy” rating with a $70 target, citing the company’s expanding market share and its massive $20 billion AI data center partnership with Saudi Arabia’s DataVolt.
The company is also expanding manufacturing capacity in the U.S., with potential new sites in Mississippi and Texas. These moves will help meet growing demand for its high-performance, liquid-cooled server solutions tailored for AI workloads.
SMCI’s direct liquid-cooling (DLC) technology gives it an edge over competitors, enabling up to 40% energy savings and 80% space efficiency in AI data centers. Combined with its modular design, Super Micro offers custom-built infrastructure optimized for Nvidia’s most powerful GPUs.
Despite modest Q3 earnings growth of 19% year-over-year, SMCI remains a high-potential AI stock, trading at just 15.2 times forward earnings—well below most peers in the sector. Revenue is expected to reach $6 billion next quarter.
As global AI spending is projected to hit $1 trillion by 2028, Super Micro stands out as a smart, undervalued way to invest in the AI revolution—without betting on a single chipmaker. With strong fundamentals and aggressive global expansion, SMCI is a key player to watch in 2025.