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.
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
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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
-
Stocks Climb Wall of Worry to Hit New Highs: Stock Market TodayThe Trump administration's threats to Fed independence and bank profitability did little to stop the bulls on Monday.
-
How Worried Should Investors Be About a Jerome Powell Investigation?The Justice Department served subpoenas on the Fed about a project to remodel the central bank's historic buildings.
-
Will Soaring Health Care Premiums Tank Your Early Retirement?If you're under 65 and want to retire soon, your plan may be derailed by skyrocketing ACA marketplace premiums. Here's what you can do.
-
Stocks Climb Wall of Worry to Hit New Highs: Stock Market Today
The Trump administration's threats to Fed independence and bank profitability did little to stop the bulls on Monday.
-
How Worried Should Investors Be About a Jerome Powell Investigation?
The Justice Department served subpoenas on the Fed about a project to remodel the central bank's historic buildings.
-
5 Golden Rules We (Re)learned in 2025 About InvestingSome investing rules are timeless, and 2025 provided plenty of evidence demonstrating why they're useful. Here's a reminder of what we (re)learned.
-
I'm a Financial Adviser: Here's How to Earn a Fistful of Interest on Your Cash in 2026 (Just Watch Out for the Taxes)Is your cash earning very little interest? With rates dropping below 4%, now is the time to lock in your cash strategy. Just watch out for the tax implications.
-
How Oil and Gas Investing Can Stabilize Returns and Shield Against Market Volatility: Tips From a Financial ProDirect exposure to oil and natural gas projects can strengthen a portfolio's long-term resilience with non-market-correlated cash flow and an inflation hedge.
-
How to Navigate the Silence After Your Business Sells for $5 Million: Tips From a Financial PlannerThe silence after a big sale can be disorienting. It's essential to redefine your identity and focus on your purpose before rushing into the next big thing.
-
Turning 59½: 5 Planning Moves Most Pre-Retirees OverlookAge 59½ isn't just when you can access your retirement savings tax-free. It also signals the start of retirement planning opportunities you shouldn't miss.
-
Are Your Retirement Numbers Not Looking Good? A Financial Adviser Runs Through Your OptionsIf you're worried about a shortfall between your income and expenses in retirement, you're not alone. But there are ways you can make up the difference.
