Shares of Super Micro Computer (NASDAQ:SMCI) soared over 10% today, a move which may be attributed to analyst praise. Indeed, five-star rated analyst Ananda Baruah of Loop Capital Markets maintained a Buy rating on the stock while increasing the price target to $1,500 per share. For reference, the previous price target was $600 per share.
Baruah arrived at this figure by applying a valuation multiple of 25 to 30 times 2026 earnings, which Loop Capital estimates will come in between $50 and $60 per share. The analyst also believes the firm is widening its lead over competitors due to its ability to scale up despite the industry’s complexities.
So far, Baruah has enjoyed a 100% success rate on SMCI stock, with an average return of 214.81% per rating.
Is SMCI a Good Stock to Buy?
Overall, analysts have a Moderate Buy consensus rating on SMCI stock based on seven Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 737% rally in its share price over the past year, the average SMCI price target of $965.64 per share implies 4.46% upside potential.
Is It Wise to Allocate $1,000 Toward SMCI Stock Right Now?
Before you hurry to invest in SMCI, think about the following:
TipRanks’ team has built the Top Stocks Portfolio for investors, and Super Micro Computer is included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant gains in the years ahead.
