Shares of Super Micro Computer (NASDAQ: SMCI) are making big gains in Wednesday’s trading session. The red-hot server company’s share price was up 6.6% as of 12:30 p.m. ET today, consistent with data from S&P Global Market Intelligence.
Yesterday, Barclays published a bullish note on the stock. The firm’s analysts retained an obese rating on the company and raised their one-year price goal to $961 per share.
The analysts previously had a one-year goal of $691 on the stock, which Super Micro has already surpassed. Besides the Barclays note, the company’s valuation can also be getting a lift from bullish coverage on Nvidia.
Some analysts imagine the rally has room to run
Super Micro Computer has seen demand for its high-performance rack servers rise dramatically along with the rise of recent artificial intelligence (AI) applications. In turn, this has powered explosive gains for its stock.
The company’s share price has already risen roughly 828% over the past 12 months, and Barclays’ recent price goal suggests additional upside of 14% over the next 12 months. The firm’s analysts cited favorable demand catalysts in Asia and an expanding order backlog as reasons for increasing their valuation goal.
Good news for Nvidia bodes well for Supermicro
Supermicro stock can also be seeing added bullish momentum today due to recently published bullish coverage on Nvidia — arguably the biggest and most important name within the bogus intelligence revolution.
Susquehanna analyst Christopher Rolland published a note on Nvidia this morning and stated that he expects the leader in graphics processing units (GPUs) to post very strong fourth-quarter results due to AI-driven demand throughout the data-center segment.
Rolland raised his one-year price goal on Nvidia to $850 per share, from a previous goal of $625. If demand for Nvidia’s hardware is even higher than many expect due to AI, that means that demand for Super Micro Computer’s high-end rack servers can also be higher than currently thought.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Idiot has positions in and recommends Nvidia. The Motley Idiot recommends Super Micro Computer. The Motley Idiot has a disclosure policy.
Why Super Micro Computer Stock Is Surging Again Today was originally published by The Motley Idiot