What's Going On With Super Micro Computer Stock On Monday?

Artificial intelligence server Super Micro Computer, Inc (NASDAQ:SMCI) stock traded higher Monday as positive cues fired from every cylinder.

The semiconductor market benefited from more Wall Street price target boosts for key AI beneficiary Nvidia Corp (NASDAQ:NVDA) and leading contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:TSM).

Morgan Stanley raised its price targets on Taiwan Semiconductor, citing its AI moat. Meanwhile, UBS analyst Timothy Arcuri maintained Nvidia with a Buy and raised the price target from $120 to $150.

Foxconn, a key Apple Inc (NASDAQ:AAPL) supplier, reported better-than-expected quarterly revenue on Friday, driven by high demand for AI servers.

The company anticipates continued growth in the current quarter, which signifies optimism for Super Micro Computer.

Foxconn, officially known as Hon Hai Precision Industry Co, reported second-quarter revenue growth of 19.1% year-on-year to 1.55 trillion Taiwanese dollars, surpassing the 1.51 trillion Taiwanese dollar LSEG SmartEstimate and setting a record high, the Print reports.

The company’s cloud and networking products segment showed significant growth year-on-year and quarter-on-quarter, fueled by strong AI server demand.

In June, Tesla Inc (NASDAQ:TSLA) CEO Elon Musk announced that Super Micro Computer will assemble half of the racks for the supercomputer being built by his AI venture, xAI.com.

Super Micro stock gained 233% in the last 12 months. Investors can gain exposure to the stock via SPDR S&P 500 (NYSE:SPY) and iShares Core S&P 500 ETF (NYSE:IVV).

SMCI Stock Prediction For 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Super Micro Computer have an average 1-year price target of $970.0, representing an expected upside of 8.66%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Super Micro Computer, while 2 analysts have bullish ratings. The street high price target from Loop Capital is $1500.0, while the street low from Wedbush is $530.0.

Price Action: SMCI shares were up 6.66% at $903.01 at the last check on Monday.

Image via Shutterstock