A year ago, Super Micro Computer Inc.’s stock was trading near $90. Now an analyst sees a pathway to $1,300.
Super Micro shares
SMCI,
have come a long way in the past year, closing Friday around $800, as the server maker has proved itself a beneficiary of frenzied spending on artificial intelligence. Rosenblatt Securities analyst Hans Mosesmann’s new target, the highest among analysts tracked by FactSet, implies roughly 60% upside from Friday’s close.
Despite Mosesmann’s optimism, Super Micro shares were declining nearly 8% shortly after Tuesday’s open.
“Key to the story is for investors to consider that the company is benefiting not only from secular AI growth … but material share gains,” he wrote. “We anticipate these gains to reach double digits in the next couple of years, up from the current mid-single digits, with a particular focus on enterprise.”
Mosesmann noted that the company’s liquid-cooling technology is set to be a key advantage, as it’s “a critical development for overcoming challenges in cloud computing at scale in AI.” Because AI workloads have heavy power requirements, Super Micro is expected to see growing interest in its technologies that allow better performance for intense operations.
In addition, he said the company’s “success in gaining market share in a relatively static market for general-purpose Xeon processors, thanks to its U.S.-centric manufacturing approach, signals a readiness to tackle and adapt to the dynamic demands in AI, including liquid cooling and comprehensive product offerings.”
As it stands, Super Micro has a roughly $45 billion market capitalization, and 15 analysts cover the stock. Mosesmann expects more will soon join them.
“The anticipation of increased research coverage should further illuminate [the company’s] business model and the opportunities in its [total addressable market],” he said.
A BofA Securities analyst launched coverage with a bullish rating last week.
Meanwhile, Mosesmann is upbeat about the company’s long-term earnings potential, which he pegs at upwards of $60 a share for calendar 2026. His prior estimate for that time period was $45 in earnings per share.
“These adjustments underline our confidence in [the company’s] capacity to outperform in a rapidly advancing technological landscape,” he wrote.
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