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
-
What's Next for Stocks After a Chaotic SpringA chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
