Why This Super Micro Computer Analyst Is Bullish: 'Revenues Could Grow Even Faster'
Portfolio Pulse from Priya Nigam
BofA Securities analyst Ruplu Bhattacharya initiated coverage of Super Micro Computer Inc (NASDAQ:SMCI) with a Buy rating and a price target of $1,040, citing strong revenue growth potential driven by AI demand. Over 50% of the company's revenues are tied to accelerators like GPUs, and the AI server market could grow at a 50% CAGR over the next three years. Shares of SMCI rose by 9.27% to $962.17.
February 15, 2024 | 5:46 pm
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Super Micro Computer Inc is expected to see strong revenue growth driven by AI demand, with a Buy rating and a $1,040 price target from BofA Securities.
The initiation of coverage by BofA Securities with a Buy rating and a high price target reflects strong confidence in Super Micro Computer's growth potential, especially in the AI sector. The significant portion of revenue tied to accelerators like GPUs and the expected market growth rate for AI servers suggest a bullish outlook for SMCI, which is likely to positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100