The stock of Super Micro Computer (NASDAQ: SMCI) is on the rise in Thursday’s trading session. As of 12:30 p.m. ET today, the share price was up 5.9%, according to data from S&P Global Market Intelligence.
Super Micro is seeing a boost today, thanks to positive news for Nvidia. With bullish coverage for the chipmaker from an analyst and the announcement of a new partner joining Nvidia’s machine-vision platform, things are looking up for both companies.
Nvidia’s share price often has a ripple effect on other companies in artificial intelligence (AI). As Nvidia’s stock was up 1.7% at 12:30 p.m., Super Micro and other AI stocks were also benefiting from the positive momentum.
Analyst Ivan Feinseth from Tigress Financial recently maintained a buy rating on Nvidia and raised the one-year price target to $985 per share. Additionally, Rail Vision joined Nvidia’s Metropolis machine-vision platform to enhance rail travel safety and efficiency.
In the short term, Super Micro stock is likely to continue moving in tandem with Nvidia’s performance, as the company uses Nvidia’s GPUs for its high-performance rack servers. However, long-term stock performance will be driven by Super Micro’s own business results, which are currently strong and poised for growth.
Before investing in Super Micro Computer, investors should consider the advice from the Motley Fool Stock Advisor team. While Super Micro Computer didn’t make their list of top 10 stocks to buy now, their recommendations have historically outperformed the S&P 500 since 2002.
Overall, Super Micro Computer is experiencing a surge in stock price today, fueled by positive news for both the company and its partner, Nvidia.