Shares of Super Micro Computer (NASDAQ:SMCI) have gone verticalsoaring 39% in just three sessionsas investors react to a triple shot of AI momentum, strategic partnerships, and macro tailwinds. On Wednesday, the stock surged another 17% at 12.53pm, putting it on track for its highest close since February. Raymond James lit the match Tuesday with a fresh Outperform rating and a $41 target, calling SMCI a market leader in AI-optimized infrastructure with pricing power that stacks up well against peers. That same day, the company revealed it had begun shipping high-density servers powered by AMD's latest EPYC 4005 chipsadding more firepower to its AI story.

But the real headline-grabber? A newly announced $20 billion multi-year partnership with Saudi data center giant DataVolt. The deal aims to accelerate the deployment of GPU platforms and rack systems for hyperscale campuses across the region. It's the kind of long-term play that could reshape SMCI's global footprint and validate its positioning in the AI infrastructure arms race. Add in the broader market boost from a U.S.-China tariff pause, and you've got the recipe for a full-blown rally.

Still, the stock is climbing out of a deep hole. SMCI is down more than 50% from its 52-week high, and while the company says its accounting issues are behind it, auditor BDO isn't convincedissuing an adverse opinion on internal controls as of June 2024. Short interest remains sky-high at 21%, and this recent run-up has all the ingredients of a classic short squeeze. Whether this is a breakout or a blip is still up for debatebut one thing's clear: Super Micro just made itself impossible to ignore.

This article first appeared on GuruFocus.