Super Micro Computer (SMCI) stock is pushing 9% higher on Thursday after Goldman Sachs analysts said the AI server total addressable market (TAM) will expand rather aggressively through the end of this decade.
As investors cheered that bullish forecast, SMCI ripped through its 20-day moving average (MA) this morning, indicating the upward momentum could sustain in the near-term.
Note that Supermicro shares have been in a sharp uptrend in recent weeks, currently up an exciting 70% versus its July low.
Why is Goldman Sachs’ report bullish for SMCI stock
In a comprehensive hardware and infrastructure research report Goldman Sachs published earlier this week, the firm said the global server market will reach a whopping $1.5 trillion by 2030.
More importantly, its experts believe AI servers specifically will account for about $1.3 trillion of that demand.
The report is largely bullish for SMCI shares given the company currently commands an estimated 40% market share in the rapidly expanding neocloud AI server segment.
Supermicro’s Building Block Solutions modular architecture allows it to integrate next-generation silicon – such as Nvidia’s Blackwell and AMD’s Instinct accelerators – and bring “customized” AI systems more efficiently to market.
What else is driving Supermicro shares higher today?
Supermicro shares are rallying also because reports emerged today that Apple is developing its own M8 Ultra chip-based AI inference servers targeting enterprise and government customers.
While custom, in-house silicon initiatives could eventually present a subtle long-term competitive dynamic for traditional server manufacturers, investors are treating it as a massive net positive for now.
Why? Because Apple’s direct push into specialized, high-density server manufacturing underscores the relentless, non-negotiable enterprise demand for specialized AI infrastructure.
For market participants, the news serves as a powerful validation that corporate, public sector, and big tech capital expenditures will continue surging well into the second half of the decade.
Wall Street recommends caution on Super Micro Computer
Beyond macro forecasts, several immediate operational and market factors are accelerating Super Micro Computer’s upward momentum today.
These include the firm’s aggressive capacity expansion hitting key operational milestones, scaling toward a production target of 6,000 server racks per month – equally split between air-cooled and advanced direct liquid-cooled (DLC) solutions.
In short, given SMCI’s massive $60 billion order backlog, its guidance for at least $65 billion in sales in fiscal 2027, and gross margins remaining resilient at 17.5%, Goldman Sachs’ industry backdrop emphasizes that Supermicro remains a direct beneficiary of unprecedented enterprise AI buildouts.
That said, following its recent rally, Wall Street analysts are not particularly bullish on SMCI stock for the remainder of 2026.
According to The Wall Street Journal, the consensus rating on Supermicro sits at Hold only – with the mean price target of less than $42 indicating a lack of further upside from current levels.
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