Super Micro Stock: Analyst Boosts Price Target to $1,300 Amid AI Server Market Boom
Market share momentum
Chokshi estimates generative AI could drive 20% gains to knowledge worker productivity, in turn fueling the long-term expansion of the AI server market to $560 billion.
He sees Super Micro eventually controlling 16% of that large market.
Is Super Micro stock a buy?
There's no question Super Micro is growing rapidly. Revenue more than doubled year over year to $3.7 billion in the company's most recent quarter as demand for AI servers exploded.
However, investors must remember two things. First, this pace of growth won't last forever. And second, Super Micro operates in a highly competitive, low-margin industry.
Before you buy stock in Super Micro Computer, consider this:
- The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them.
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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.