Posted 2/16/2024, 10:37:59 PM
Super Micro Slumps 20% as Analyst Warns AI Server Growth Priced In
- Super Micro Computer (SMCI) stock dropped 20% today due to new neutral analyst coverage from Wells Fargo
- The analyst set a $960 price target, below the $1,045 price at which SMCI opened today
- SMCI has benefited from AI-driven server demand, but the analyst felt the valuation implied unrealistic long-term growth
- Even with the sell-off, SMCI is still up significantly thanks to favorable AI industry trends
- For investors willing to accept volatility, today's decline could be a buying opportunity given SMCI's growth potential