Super Micro Computer Stock Soars on Bullish Forecast for AI Server Demand
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Super Micro Computer (SMCI) stock jumped 11.3% on Wednesday after a bullish analyst note raised the price target to $961 per share.
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The price target hike is based on expectations of continued high demand for SMCI's servers for artificial intelligence (AI) computing.
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SMCI stock is up a massive 210% year-to-date and 872% over the past year amidst blowout financial results.
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The company expects to more than double revenue this fiscal year due to surging demand for its high-performance AI servers.
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Despite incredible gains, SMCI trades at a lofty valuation of about 41x forward earnings, making the stock riskier after its parabolic rise.