Usually, it’s good news when an analyst starts praising a stock. And for computer products manufacturer Super Micro Computer (NASDAQ:SMCI), this was no exception. Super Micro managed to jump nearly 7% in Tuesday afternoon’s trading after getting some love from Hedgeye.
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Felix Wang, an analyst with Hedgeye, gave Super Micro a nod for a very familiar reason: a great presence in artificial intelligence (AI). That’s been buzzword enough for anyone these last few months, and Super Micro has been working extensively with Nvidia (NASDAQ:NVDA), which has built its own surge on the back of artificial intelligence.
Of course, Super Micro has more going for it than AI alone, as its revenue has been on a tear. A connection to AI only makes a winning proposition even brighter.
Can The Upward Trend Continue?
Of course, Super Micro has had a remarkable run so far. Just since January 2023, it’s up an astonishing 1,290%, and performances like today suggest that it can go still further. However, for those who think the growth might be priced in already, there are signs that’s just not so. Super Micro’s guidance is already calling for further rises to come, and with an upgrade cycle in the works, that’s just more opportunity for Super Micro to sell into a field that it’s already sold into. There are even signs that Super Micro is pulling market share out from under-computing competitors like Dell (NYSE:DELL).
What Is the Price Forecast for Super Micro Computer Stock?
Turning to Wall Street, analysts have a Hold consensus rating on SMCI stock based on six Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 1,193.49% rally in its share price over the past year, the average SMCI price target of $956.33 per share implies 17.09% downside risk.
