Super Micro Computer (SMCI) shares are trading fo🏅r leಌss than half of their 2024 high. The server maker has a new bull that sees a recovery ahead.

Analysts at Needham initiated coverage of Super Micro with a "buy" rating and price target of $600, a premium of more than 36% to Tuesday’s close. The company, which Needham called “the coolest kid in AI town," is involved in the deployment of some of the world’s largest AI clusters and entered fiscal 2025 with record order backlog.

Needham cited Super Micro’s position as a first mover in rack-level liquid cooling systems, an important technological component of reducing the electricity cost of data centers. The company has expanded its liquid cooling rack manufacturing capacity in Silicon Valley and Taiwan, and 🌳will launch production in Malaysia in November.

The stock edged lo🌱wer today, f🔴inishing near $437.

JP Morgan Cools Its Jets

Earlier this month, JP Morgan analysts 澳洲幸运5开奖号码历史查询:downgraded Super Micro to "neutral" from "overweight" and cut their 澳洲幸运5开奖号码历史查询:price target to $500 per share from $950.

Super Micro delayed the release of its annual report last month, which JP Morgan said could also cause an "overhang," r🃏ecommending that new investors "remain on t𓆏he sidelines" until the uncertainty is resolved.

Shares of Super Micro are up more than 50% this year but have lost about half of their value over the past three months in part due to disappointing 澳洲幸运5开奖号码历史查询:fiscal fourth-quarter earnings.