Mizuho Raises AMD, Super Micro Target Prices 15% 33% on Middle East Deals

Mizuho Securities has swiftly adjusted its target prices for AMD and Super Micro Computer following significant deals secured by both companies in the Middle East. The brokerage firm has raised AMD's target price from $117 to $135 and Super Micro Computer's target price from $30 to $40, underscoring the strategic importance of these partnerships.

The recent agreements in the Middle East have positioned both AMD and Super Micro Computer for substantial growth. Super Micro Computer has entered into a $200 billion strategic partnership with DataVolt, while AMD has signed a $100 billion deal with HUMAIN. These collaborations are expected to drive significant revenue for both companies over the next five years.

Analyst Vijay Rakesh highlighted the significance of these deals, noting that the 500-megawatt data center collaboration between AMD and NVIDIA in the Middle East is particularly noteworthy. This five-year agreement is anticipated to generate orders for 280,000 GPUs for NVIDIA and potentially up to 350,000 units for AMD. Rakesh also emphasized the strategic value of Super Micro Computer's partnership with DataVolt, which is expected to yield substantial benefits for the company.

The increased target prices reflect Mizuho's optimism about the future prospects of both AMD and Super Micro Computer, driven by their successful forays into the Middle Eastern market. These partnerships are expected to bolster their market positions and drive long-term growth. The strategic importance of these deals is underscored by the potential for significant revenue generation and the long-term benefits they offer to both companies.