Super Micro Computer Inc (NASDAQ: SMCI) is extending gains today after a JPMorgan analyst dubbed it the leader of the “AI compute market”.

Samik Chatterjee assumed coverage of the artificial intelligence company with an “overweight” rating and said its shares could climb further to $1,150 – up 20% versus their previous close.   

The analyst is bullish on Super Micro stock because he expects it to remain a leader in the AI space “led by a balance of custom-built solutions and fast time to market”.

Chatterjee’s research note arrives only days before $SMCI is scheduled to report its financial results for the third quarter.

Consensus is for the IT firm based out of San Jose, California to earn $5.24 a share versus $1.42 per share in the same quarter last year.  

Samik Chatterjee recommends owning Super Micro shares because he expects continued growth in the AI server market “which is burgeoning with demand stemming from AI models”.

“AI inferencing workloads” are also expected to help that market inflate from just $41 billion last year to a whopping $283 billion by the end of 2028.

The JPMorgan analyst expects $SMCI to grow on a compound annualised basis of 43% over the next four to five years. That will enable it expand its share in the AI server market to between 10% and 15%, he added.

Chatterjee’s positive view on Super Micro Computer Inc is interesting considering it’s already more than tripled since the start of 2024.  

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