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
-
Dementia Hot Spots: Is Your Region Raising Your Risk?Why a 25% higher dementia risk could be tied to your US location. But you're not powerless; there are 14 ways to lower your risk.
-
Five Surprising Senate Bill Tax Changes to KnowTax Policy U.S. Senate Republicans released proposed tax changes for Trump’s ‘one big, beautiful bill.” Some provisions are already stirring debate.
-
An Estate Planning Attorney's Guide to the Importance of POAsRegularly updating your financial and health care power of attorney documents ensures they reflect your current intentions and circumstances. It's also important to clearly communicate your wishes to your chosen agents.
-
Divorce and Your Home: An Expert's Guide to Avoiding a Tax BombYour home is probably your biggest asset, so if you're getting a divorce, the stakes are high. Keep it? Sell it? You need to have a good plan in place for how to handle it.
-
Stock Market Today: Stocks Grapple for Peace Trade GainsOf course dramatic tension is high on Fed Day, only this time it's about war and peace as well as monetary policy.
-
Fewer Agents, Fewer Audits: How IRS Staff Cuts Are Changing EnforcementSignificant reductions in the IRS workforce appear to be increasing the number of 'no change' audit closures. The shift could potentially increase the overall tax gap — the difference between taxes that should have been paid and those that were.
-
What if You Could Increase Your Retirement Income by 50% to 75%? Here's HowCombining IRA investments, lifetime income annuities and a HECM into one plan could significantly increase your retirement income and liquid savings compared to traditional planning.
-
Here's Why You Shouldn't Do an Estate Plan Without a Financial PlannerEstate planning isn't just about distributing assets. Working with a financial adviser can ensure you've considered the big picture — and the finer details.
-
Stock Market Today: Rally Pauses for "Real End" to Middle East WarThe future is uncertain by nature, but it's hard to recall a time when views on what's next have been this volatile from day to day.
-
We Are Peter Lynch: How to Invest in What You KnowTake a look around, go to a free stock market data website, and get to work.
