Super Micro Computer: Why This Hot Stock Could Hit $1,500

Super Micro Computer's long-term AI revenue potential is underappreciated, Loop Capital says. Here's what you need to know.

closeup of signage for Super Micro Computer at Taiwan trade show
(Image credit: I-Hwa Cheng/Bloomberg via Getty Images)

Super Micro Computer (SMCI) is one of the market's best-performing stocks in 2024, surging more than 240% year-to-date through the April 17 close. But one analyst thinks it could reach $1,500 per share, the highest price target on Wall Street and representing an increase of more than 50% from today's levels.

Earlier this week, Loop Capital upped its price target on Super Micro Computer to $1,500 from $600, citing increased confidence in the company's position in the AI (artificial intelligence) server market. The investment banking and brokerage firm also said it believes the recent addition to the S&P 500 could maintain a forward price-to-earnings ratio of 20 to 30 times, according to MarketWatch.

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.