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Super Micro Computer (SMCI, Financials) rose 19% in midday trading Wednesday, adding to Tuesday's 16% gain, after announcing a multibillion-dollar deal with a Saudi data center operator.
The stock has climbed nearly 50% in 2025, far outperforming the S&P 500 index. The latest rally was triggered by a $20 billion agreement with DataVolt, a Saudi Arabian data center company, disclosed late Tuesday.
Supermicro's partners Nvidia (NVDA, Financials) and Advanced Micro Devices (AMD, Financials) also moved higher this week after unveiling separate AI collaborations with Humain, an AI subsidiary of Saudi Arabia's sovereign wealth fund.
Raymond James initiated coverage of Supermicro earlier this week with an outperform rating, describing the company as a market leader in AI-optimized infrastructure. The firm holds an estimated 9% share of the $145 billion AI platform market.
Despite recent gains, Supermicro shares have faced volatility amid investor concerns over financial reporting and accounting controls. In February, the company narrowly avoided delisting over delayed filings.
Investors will be watching for Supermicro's next earnings report and updates on its Saudi partnership rollout.
This article first appeared on GuruFocus.