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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and CommentaryThe September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your WalletInterest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your InvestmentsDon't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can HelpArtificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
Hot August CPI Report Doesn't Shift the Rate-Cut Needle: What the Experts SayThe August CPI came in higher than forecast on a monthly basis, but Wall Street still expects a rate cut at next week's Fed meeting.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial PlannerHolding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
