SMART Global Holdings Optimizing AI Investments: Analyst Forecasts Upside In Valuation
Portfolio Pulse from Anusuya Lahiri
Needham analyst Rajvindra Gill maintains a Buy rating for SMART Global Holdings, Inc (SGH) and raises the price target from $32 to $37. SGH is divesting its Brazil segment, which is expected to boost the gross margin and free up capital for AI investment and M&A. The company's IPS segment, which accounted for 45% of sales and grew 31% Y/Y in 3Q FY23, benefits from AI, ML, and data analytics trends. SGH could deploy 50-60K NVIDIA Corp (NVDA) GPUs for AI training at scale. Rosenblatt analyst Kevin Cassidy also reiterates a Buy rating for SGH with a $35 price target.
June 30, 2023 | 6:06 pm
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Meta Platforms Inc (META) completed the second phase build-out of its AI Research SuperCluster, with Penguin as the implementation partner.
The news mentions that META completed the second phase build-out of its AI Research SuperCluster with Penguin as the implementation partner. However, it does not provide enough information to determine the potential impact on META's stock price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
SMART Global Holdings, Inc (SGH) could deploy 50-60K NVIDIA Corp (NVDA) GPUs for AI training at scale.
While the news mentions that SGH could deploy NVDA's GPUs for AI training, it does not provide enough information to determine the potential impact on NVDA's stock price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
SMART Global Holdings, Inc (SGH) receives a Buy rating from Needham and Rosenblatt analysts with price targets of $37 and $35 respectively. The company's divestment of its Brazil segment is expected to boost the gross margin and free up capital for AI investment and M&A.
The positive ratings from Needham and Rosenblatt analysts, along with the company's strategic moves such as the divestment of its Brazil segment and focus on AI investment, are likely to have a positive impact on SGH's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100