Posted 3/4/2024, 2:34:50 PM
Super Micro Joins S&P 500, Goldman Initiates at Neutral Citing AI Growth Prospects and Competitive Pressures
- Super Micro Computer (SMCI) is joining the S&P 500 on March 18th, replacing Whirlpool and Zions Bancorporation
- Goldman Sachs initiated coverage on SMCI with a Neutral rating and $941 price target
- SMCI is a leading manufacturer of AI servers, well-positioned to benefit from surging AI demand
- However, Goldman's outlook is tempered by competitive pressures and SMCI's premium valuation
- Risks include competition from Dell & Cisco, customer concentration, and margin pressures from expansion