Shares of Super Micro Computer (NASDAQ:SMCI) have gained over 840% in one year. Despite this enormous gain in value, J.P. Morgan analyst Samik Chatterjee and Northland Securities analyst Nehal Chokshi see further upside in SMCI stock.
Notably, SMCI provides high-performance server and storage solutions. Strong artificial intelligence (AI)-driven demand for its offerings led to this rally in SMCI stock.
Chatterjee initiated coverage on SMCI stock with a Buy recommendation on March 25. His price target of $1,150 implies 10.28% upside potential from current levels. The analyst expects growing AI-led demand and the company’s tailor-made solutions to support Super Micro stock. Meanwhile, Chokshi raised the price target to $1,300 from $925, representing 24.67% upside potential from current levels. The analyst maintained a Buy on SMCI stock. Chokshi expects SMCI to benefit from the leadership in the branded server market and growing Gen AI server market.
Is SMCI a Good Stock to Buy?
SMCI continues to win new customers with its AI infrastructure products. Moreover, the company’s leadership is optimistic and sees accelerating demand in the coming months due to the widespread AI applications. With strong demand and a robust pipeline of new products, SMCI could deliver solid financials in 2024.
However, due to the significant increase in its price, analysts are cautiously optimistic about SMCI stock. With six Buy and three Hold recommendations, SMCI stock has a Moderate Buy consensus rating. Analysts’ average price target on SMCI stock is $983, implying a 5.73% downside potential from current levels.
