Looking for a Dirt Cheap AI Stock With Massive Upside? 1 Analyst Firm Thinks Super Micro Computer Can Soar 66%.
From Yahoo Finance: 2025-03-22 08:15:00
Super Micro Computer (NASDAQ: SMCI) has faced controversy but was cleared of wrongdoing by an external committee. The stock is up 50% in 2024, with potential for more growth. Northland Securities raised its price target to $70, indicating a 66% upside.
Supermicro benefits from the AI boom, providing parts for server racks that cool GPUs. Its DLC technology saves clients 40% in energy costs and 80% in space. Supermicro is positioned to benefit from Nvidia’s new GPU architecture, Blackwell, driving growth in AI infrastructure and cloud computing.
In Q2 of fiscal 2025, Supermicro saw sales jump 55% to $5.7 billion. Q3 revenue is estimated between $5-6 billion, up 43%. CEO projects $23.5-25 billion in revenue for 2025 and $40 billion for 2026. Despite strong growth, the stock is undervalued at 15.9 times trailing earnings and 14.6 times forward earnings.
Supermicro is a strong buy with potential for a premium increase. It could reach $70 if it posts good results and avoids accounting issues. With significant growth opportunities, Supermicro remains undervalued and poised for further success in the AI and cloud computing sectors.