Super Micro Computer (SMCI, Financial) shares surged about 3% on Tuesday morning after Rosenblatt Securities reinitiated coverage on the AI-focused firm. The brokerage set a Buy rating with a 12‑month price target of $60.

Analysts noted that AI revenues now represent nearly 70% of Super Micro's total sales, a figure that continues to grow as the company leverages its innovative design for scalable, high‑performance computing solutions.

The firm's strategy centers on its proprietary Building Block Architecture, supported by plug‑and‑play functionality and Twin architecture to optimize demanding AI workloads. Additionally, its advanced liquid cooling technology, which can more than double rack compute power, gives it an edge in energy-sensitive data centers.

Super Micro Computer's strategic initiatives demonstrate the company's dedication to innovation in this quickly expanding sector. The company has robust growth prospects in AI and high-performance computing that well position the company to secure an expanding market opportunity and gain a leadership position.