From Nasdaq:

Super Micro Computer (NASDAQ: SMCI) has seen its shares double following a big jump in sales and earnings. Second-quarter results show sales doubling year-over-year, and revenue soared by 73% from the prior quarter. Bank of America analyst Bhattacharya issued a buy rating and a price target of $1,040. Supermicro’s P/E ratio has risen above 40, but strong net income growth is expected to offset it. The company boosted sales guidance for the fiscal year by nearly 40%.

Bhattacharya sees a 50% annualized growth in AI server demand over the next three years. Supermicro’s strong sales growth comes from its focus on AI infrastructure that powers data centers. The supply of chips from Nvidia’s competitors like Intel and AMD will help support Supermicro’s growth. As chipmakers ramp up production of AI chips in high demand, Supermicro is expected to see a long runway of business expansion.

The Motley Fool Stock Advisor analyst team rates Super Micro Computer as a “hold”, but the service has produced three times the return of the S&P 500 since 2002. Ten new stock picks are shared monthly, offering investors a blueprint for success.

Bank of America is currently among the top providers of guidance and investment advice. The advertising partner of Motley Fool rivals, Howard Smith has holdings in Intel and Nvidia, and the Motley Fool itself holds and recommends shares of both Advanced Micro Devices, Bank of America, and others.



Read more: Can Super Micro Computer Stock’s Parabolic Move Continue?