SMCI's Strong AI Demand & Key Strategic Partnerships: Analyst Raises Expectations
Portfolio Pulse from Nabaparna Bhattacharya
Susquehanna analyst Mehdi Hosseini has reiterated a Neutral rating on Super Micro Computer, Inc. (SMCI), raising the price target to $300 from $90. The company recently reported better-than-expected Q4 earnings, with net sales of $2.18 billion. About 52% of its Q4 revenue was from AI. The company is also benefiting from strategic partnerships with crucial Cloud/Enterprise solution providers. However, Hosseini warns of looming concerns in a competitive industry.
August 10, 2023 | 5:04 pm
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Super Micro Computer, Inc. (SMCI) has had its price target raised to $300 from $90 by Susquehanna analyst Mehdi Hosseini. The company's Q4 earnings exceeded expectations, with a significant portion of revenue coming from AI. However, the analyst warns of potential challenges in a competitive industry.
The raised price target and better-than-expected Q4 earnings are positive news for SMCI, which could lead to a short-term increase in the stock price. The company's strong performance in AI and strategic partnerships also bode well for its future growth. However, the analyst's warning about potential challenges in a competitive industry could temper investor enthusiasm.
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