Impressive Surge of Super Micro Computer Stock on Wall Street Enthusiasm
Monday, 25 March 2024, 17:29
Increasing bullishness
The stock of Super Micro Computer, also known as Supermicro (NASDAQ: SMCI), surged over 10% on Monday morning, driven by positive analyst coverage from JPMorgan and Northland.
JPMorgan analyst Samik Chatterjee
- Initiated coverage with an overweight (buy) rating and a $1,150 price target, signaling an 18% upside potential
- Highlights Supermicro as the leading company in the AI compute market
- Foresees robust demand driven by accelerating AI adoption
Northland analyst Nehal Chokshi
Increased price target to $1,300 for a 34% potential upside, emphasizing Supermicro's market leadership in branded servers and generative AI market share growth.
Accelerating demand
- Generative AI server market expected to grow 75% annually over the next three years
- Supermicro gaining market share through collaborations with top AI chipmakers
- Stock rallied 1,200% since last year with remarkable revenue and earnings growth
- Despite strong performance, stock remains attractively valued
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