Shares in Super Micro Computer (SMCI) edged down today despite sealing a deal with communications giant Ericsson (ERIC) to use AI to clamp down on shoplifting and prevent traffic accidents.
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Got the Edge
Super Micro Computer was down 1% in early trading even though it unveiled a strategic collaboration with Ericsson to accelerate Edge AI deployment. In simple terms this means AI applications being utilized on devices such as Internet of Things tools, cameras, smartphones or sensors near a user rather than on a centralized cloud server.
The two companies have signed a Memorandum of Understanding to explore the combination of Ericsson Enterprise Wireless Solutions’ 5G connectivity with Super Micro Computer’s Edge AI platforms into commercial bundles.
This is expected to boost services in businesses in retail, factories, healthcare, and other sectors to rapidly deploy Edge AI together with wireless connectivity.
“Supermicro delivers cutting-edge solutions that allow enterprises to harness the power of AI at the edge,” said Mory Lin, Vice President, IoT/Embedded & Edge Computing at Super Micro Computer.
Shops and Factories
Specific industry applications include accelerating the checkout process in shops through real-time image recognition of items, and detecting and alerting against theft. In factories it can be used to monitor and control industrial machinery and on the roads it can enhance traffic safety by data analysis directly from camera and sensor sources.
In healthcare management it could also be used to boost just-in-time inventory management to ensure that critical medical supplies are available when needed and to reduce waste.
Super Micro Computer stock is up 17% over the last three months as demand for AI continues to grow and it strikes other deals such as Saudi Arabia’s Data Volt. This is despite some concerns over more intense competition both domestically and from overseas.
Is SMCI a Good Stock to Buy Now?
On TipRanks, SMCI has a Moderate Buy consensus based on 6 Buy, 5 Hold and 1 Sell ratings. Its highest price target is $70. SMCI stock’s consensus price target is $40.83 implying a 4.56% downside.
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