Super Micro Surges Over 4% as Analysts See Continued Growth for AI Server Demand
• Super Micro Computer (SMCI) stock continued to rally on Wednesday morning after a brief pause, up over 4% at one point • An analyst from Argus Research initiated coverage with a buy rating and a street-high price target of $1,350 per share, citing SMCI's position in AI servers • The analyst expects "multiple years of strong top-line growth, margin expansion, and [earnings per share] acceleration" for SMCI • Another analyst suggests demand for AI servers will grow at a 75% compound annual rate over the next 3 years, calling it an "unprecedented" build-out • Despite already rallied over 1,000% in the past year, SMCI stock still only trades at 3x next year's expected sales, remaining affordable