Super Micro Stock (NASDAQ:SMCI) Wins Another Bullish Review
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Super Micro Stock (NASDAQ:SMCI) Wins Another Bullish Review

Story Highlights

Shares of Super Micro gained yesterday after BofA analyst Ruplu Bhattacharya initiated coverage on the stock with a Buy rating.

Super Micro Computer (NASDAQ:SMCI) stock rallied 14% on Thursday and hit a new record high of $1,006.35 after it gained another bullish review. BofA Securities analyst Ruplu Bhattacharya initiated coverage on Super Micro stock with a Buy rating. Further, she assigned a price target of $1,040, implying about 4% upside potential from the current level.

SMCI designs and manufactures high-performance and high-efficiency server solutions and other computer hardware components.

Bullish Analyst’s Opinion

The analyst is optimistic about the company’s bottom-line growth in the next few years owing to the strong demand for artificial intelligence (AI) servers. Interestingly, Bhattacharya expects the AI server market to expand by a compound annual growth rate of 50% over the next three years, highlighting promising prospects for SMCI.

She believes that the SMCI’s ability to collaborate with various new designs and technologies positions it favorably, especially as numerous AI-related processors are set to debut in the coming years.

Is SMCI Stock a Good Buy?

The company’s stellar second-quarter performance and upward revision of its full-year 2024 guidance suggest confidence in its future growth prospects. It should be noted that several AI companies are increasing investments to boost production capacity, and SMCI stands to gain from this trend.

Super Micro has a Moderate Buy consensus rating based on five Buys, one Hold, and one Sell rating. SMCI stock has skyrocketed by more than 947% over the past year, and the average SMCI price target of $702.29 implies a downside potential of 30.1% at current levels. Perhaps analysts are yet to update their price targets following the recent rally in the company’s share price.

Disclosure

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