U.S.-based AI server company Super Micro Computer’s (SMCI) stock led the S&P 500 (SPX) on Tuesday as investors seized buying opportunities

Super Micro is a “show-me story,” says a Rosenblatt analyst, but he sees room for gross margins to expand as the company sells more to enterprise customers.

Super Micro Computer (NASDAQ: SMCI) stock is surging in Wednesday's trading thanks to multiple bullish catalysts. The company's share price was up 5.6% as of 3:30 p.m. ET and had been up as much as 10.

Super Micro Computer (SMCI) stock received a new Buy rating from a five-star analyst at Rosenblatt Securities. Kevin Cassidy reinitiated

Shares of Super Micro Computer have surged since the company's IPO, and the stock's forecast should catch investors' attention.

An end to Super Micro’s delisting drama is welcome news for “fast money” and quantitative investors. But one analyst says institutional investors are still avoiding the stock.

All of this halted spectacular momentum that had pushed the stock to a nearly 800% gain in the previous three years. Supermicro was one of the early winners of the artificial intelligence (AI) boom as it makes servers and other equipment critical to the operations of AI data centers.

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.