The shares of Super Micro Computer Inc (NASDAQ: SMCI) surged 14.02% to a fresh all-time high on Thursday on expectations of future growth propelled by artificial intelligence technology as demand for the latter continues to soar.
Bank of America analysts began coverage on the stock by assigning a “Buy” rating, while noting the “provider of server and storage solutions will be a beneficiary of AI-driven demand growth.”
The analysts also said that Super Micro Computer Inc had an “ability to work with multiple new designs and technologies that will serve it well as myriad AI-related processors debut in the next several years.”
Meanwhile, Barclays revised up its price target on the stock from $691 to $961, as the firm cited Super Micro Computer’s presence within the AI ecosystem and its strategic partnerships with tech giants such as NVIDIA, Advanced Micro Devices and Intel.
“As AI architecture becomes more complex, SMCI has design capabilities to mix/match components to meet a customer’s increasingly varied needs, as well as using flexible manufacturing with scale to meet these varied requirements,” Barclays analysts wrote in a client note, cited by Investopedia.
Stock Performance
The shares of Super Micro Computer Inc (SMCI) closed 14.02% ($123.45) higher at $1,004.00 on Nasdaq on Thursday, as they extended the gains from the previous eight market sessions.
The SMCI shares closed at a fresh record high.
The tech company’s total market cap now stands at $56.157 billion.
The shares of Super Micro Computer Inc (SMCI) went up 246.24% in 2023, compared with a 43.42% gain for the benchmark index, Nasdaq Composite (IXIC).
The tech company’s shares have surged another eye-watering 253.20% so far this year.
Analyst stock price forecast and recommendation
According to TipRanks, at least 5 out of 7 surveyed investment analysts had rated Super Micro Computer Inc’s stock as “Buy”, while 1 – as “Hold”. The median price target on the stock stands at $702.29, which translates into a 30.05% downside compared to the closing price on Thursday.
The high point of the analyst forecast range stands at $1,040.00.
The post Super Micro Computer shares close at record high on AI growth prospects first appeared on Trading Pedia.
