Why Super Micro Computer Stock Jumped 5% on Monday
Shares of Super Micro Computer (NASDAQ: SMCI), a provider of high-performance server solutions for the artificial intelligence (AI) industry, were up by around 5% as of 1:30 p.m. ET on Monday after Northland Capital Markets analyst Nehal Chokshi raised his price target on Supermicro stock by nearly 50%.
To be precise, Chokshi raised his price target on Supermicro stock (which was already rated outperform, and which Northland calls a "top pick" in AI) to $925 per share. The analyst observed that since Northland first recommended buying Supermicro in November, the stock has roughly tripled in price despite earnings estimates rising only about 42%. They are now forecast to hit $27 per share in 2025.
For many investors, the discrepancy between forecast earnings growth and the price of the stock might be taken as a warning sign -- but not for Chokshi.
Source Fool.com
