Super Micro Computer stock gained significant ground on Wednesday, propelled by favorable analyst coverage and the company’s soaring valuation driven by AI-related demand, resulting in substantial sales and earnings growth. Despite the increased risk, the stock’s upward trajectory may continue.
Super Micro Computer’s stock surged by 12.35% on Wednesday, closing at $989.27, following a note from Barclays analysts who raised the one-year price target for Super Micro Computer from $691 per share to $961 per share. This upward revision is attributed to the strong demand for Supermicro’s rack servers fueled by artificial intelligence (AI).
In addition to the positive analyst coverage, Super Micro Computer likely received a boost from a bullish report on Nvidia stock by Susquehanna analyst Christopher Rolland, anticipating fourth-quarter revenue surpassing market expectations due to AI-driven demand. Given Supermicro’s reliance on surging AI-related demand, positive news for Nvidia could also benefit the server and storage company’s outlook.
Despite the remarkable surge in Super Micro Computer’s stock, with a 210% increase in 2024 and an astounding 872% rise over the last year, the company has consistently delivered impressive results. The second-quarter results for the current fiscal year, ending in December, exceeded the improved guidance, reflecting the company’s robust performance.
