From Nasdaq: 2024-04-01 17:30:36

Super Micro Computer (SMCI) is a key player in the AI infrastructure market, manufacturing high-powered servers for cutting-edge AI workloads. The company’s stock price is up 870% over the past year, valued at $56 billion and added to the S&P 500 Index in March. Despite some recent volatility, analysts believe SMCI has strong growth potential.

Analysts are bullish on SMCI for several reasons, including its impressive speed to market advantage over AI server competitors like NVIDIA, AMD, and Intel. Barclays rates SMCI as “Overweight” with a price target of $961, citing the company’s ability to quickly match new chip technologies with tailored server products. SMCI is expected to benefit from the expanding AI server market, forecasted to reach $50.65 billion by 2029.

SMCI reported a 103% increase in revenue in Q2 2024, exceeding expectations, with projected sales growth to $3.94 billion in the next quarter. The company also demonstrated a remarkable acceleration in earnings per share (EPS), showing profitability and cost management skills. Analysts anticipate EPS to surge 86% in fiscal year 2024, with continued growth expected in 2025. Argus rates SMCI a “Buy” with a price target of $1,350.



Read more at Nasdaq: 3 Reasons to Buy Super Micro Computer Stock Right Now