Impressive Surge of Super Micro Computer Stock on Wall Street Enthusiasm

Monday, 25 March 2024, 17:29

Super Micro Computer (NASDAQ: SMCI) stock surged over 10% following bullish coverage from prominent Wall Street analysts. The AI-centric server maker is attracting attention for its leading position in the AI compute market and robust growth potential. Analysts foresee significant upside for the stock, driven by accelerating demand for generative AI servers and market share gains at the expense of larger rivals.
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Impressive Surge of Super Micro Computer Stock on Wall Street Enthusiasm

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

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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