1 Wall Street Analyst Thinks Super Micro Computer Stock Is Going to $941. Is It a Sell Around $1,140?
Super Micro Computer (NASDAQ: SMCI) has been on an incredible run over the last year, and it's attracting lots of attention on Wall Street. On Monday, Goldman Sachs analysts published a note initiating coverage on Supermicro. The investment firm assigned a "neutral" rating on the stock, indicating that it does not recommend buying or selling shares right now.
Goldman's analysts also put a one-year price target of $941 per share on the stock. With the artificial intelligence (AI) stock priced at roughly $1,140 per share, that would imply potential downside of 17% over the next year. Has Supermicro stock become too risky?
In Goldman's note on Supermicro, the analysts indicate that the massive run-up for the server specialist's valuation has been warranted. The analysts pointed to the company's strengths in the high-performance server market and status as an "AI winner" with valuable business relationships as legitimate catalysts for its incredible stock gains. Supermicro's share price is up more than 1,000% over the last year.
Source Fool.com
