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.
"Our work suggests business remains healthy, and we're anticipating robust March quarter results and a strong June quarter guide," Loop Capital analyst Ananda Baruah wrote in the research note, as reported by MarketWatch.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
While SMCI has yet to confirm its March earnings report, the release will likely occur in early in May based on the company's previous quarterly events.
Baruah thinks Super Micro's revenue could be in the range of $4.1 billion to $4.5 billion for the quarter, exceeding the company's guidance of $3.7 billion to $4.1 billion and Wall Street's current estimate of $4 billion.
Analysts overwhelming bullish on Super Micro Computer
Loop Capital's positive note on the AI stock echoes the opinions of Argus Research and BofA Securities. Both have the stock rated as a Buy with price targets of $1,350 and $1,280, respectively.
"Although SMCI has had huge gains in the past year, the company is primed for multiple years of strong top-line growth, margin expansion and EPS [earnings per share] acceleration," Argus Research analyst Jim Kelleher wrote in a March 6 note.
Super Micro is "well positioned to benefit from a growing AI market" and it is "putting in capacity to support strong demand and revenue growth," BofA Securities analyst Ruplu Bhattacharya said in a March 13 research note.
Of the 17 analysts covering the tech stock tracked by S&P Global Market Intelligence, seven say it's a Strong Buy, four have it at Buy, five rate it a Hold and one says Strong Sell. This works out to a consensus Buy recommendation and with high conviction to boot.
Super Micro last released earnings results on January 29. The company said its fiscal second-quarter revenue more than doubled year-over-year to $3.7 billion and its earnings per share increased 71.5% to $5.59 compared to the year-ago period.
Related Content
-
With Fixed Indexed Annuities, Zero Is Your HeroFixed indexed annuities are retirement tools that can offer potential growth as well as principal protection by limiting market risk. Here's how they work.
-
Before Buying Your First Home, Get These Three Ducks in a RowWith mortgage rates higher than we're used to, making sure you can comfortably afford to buy your first home is more important than ever.
-
With Fixed Indexed Annuities, Zero Is Your Hero
Fixed indexed annuities are retirement tools that can offer potential growth as well as principal protection by limiting market risk. Here's how they work.
-
Before Buying Your First Home, Get These Three Ducks in a Row
With mortgage rates higher than we're used to, making sure you can comfortably afford to buy your first home is more important than ever.
-
Stock Market Today: Stocks Swing Lower After Fed's Jumbo Rate CutThe Federal Reserve caught plenty of folks off-guard with its jumbo-sized half-percentage point rate cut.
-
Fed Goes Big With First Rate Cut: What the Experts Are SayingFederal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
-
Stellantis Stock Shrugs Off UAW Strike Authorization Vote: What to KnowThe UAW will hold a vote to authorize a strike against Stellantis for failing to hold up its end of a 2023 contract. Here's what this means.
-
Super Micro Computer: Why This AI Stock Could Hit $600Super Micro's first-mover advantage could make it a significant beneficiary to growing AI investments, Needham says. Here's what investors need to know.
-
Microsoft, BlackRock Team Up to Invest in AI Infrastructure: What to KnowMicrosoft and BlackRock are joining forces to invest up to $100 billion in AI infrastructure. Here's what you need to know.
-
From Trusts to Taxes: Is Your Estate Plan Ready?Leaving a legacy can't be left up to chance. You need an estate plan that takes advantage of all the tools available, including possibly an irrevocable trust.
