Super Micro Computer Inc (NASDAQ: SMCI) has rallied a whopping 900% in the trailing twelve months but a Rosenblatt analyst is convinced it still has significant room to the upside.
$SMCI stock could climb further to $1,300Hans Mosesmann reiterated his “buy” rating on the information technology company this morning and raised his price target to $1,300 – which suggests its shares could gain another 60% from here.
The analyst is super bullish as $SMCI stock as it is well positioned to benefit from a “robust growth in AI computing”.
He’s confident that Super Micro Computer will push its market share gains up from mid-single digits at writing to double-digit in the coming years.
Note that the Nasdaq-listed firm saw its revenue more than double on a year-over-year basis in its latest reported quarter (find out more).
What else could benefit Super Micro Computer?Super Micro Computer Inc offers a range of liquid cooling solutions for servers and data centers that Hans Mosesmann expects will contribute significantly to its growth story moving forward.
$SMCI success in gaining share in a relatively static market for general-purpose Xeon processors signals a readiness to tackle and adapt to dynamic demand in AI, including liquid cooling.
His research note on $SMCI assumes compound annualised growth rate of more than 50% in artificial intelligence over the next several years.
It is worth mentioning here, however, that Super Micro Computer does not currently pay a dividend to its shareholders.
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