What Are Analysts Talking About Super Micro Computer (SMCI)?

We recently published a list of 10 Stocks That Analysts Are Talking About. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against other stocks that analysts are talking about.

Like any other informed investor, we are always on the hunt for stocks that analysts are talking about. Analysts use their in-depth research expertise, industry knowledge, and industry connections to figure out how well companies are doing every quarter.

Once they stumble upon something that could change the course of that company’s stock, they come out with analyst updates. These are usually in the form of an upgrade or downgrade, or simply an update on a previously assigned rating.

For retail investors, going through these reports saves a lot of time. This is why we came up with 10 stocks that analysts are talking about this week. To come up with the list of 10 stocks that analysts are talking about, we considered companies that received an analyst upgrade or coverage in the last 5 days.

A team of technicians in a server room, testing and managing the newest server solutions.

Super Micro Computer, Inc. (NASDAQ:SMCI)

Super Micro Computer, Inc. (NASDAQ:SMCI) is a designer and manufacturer of high-performance server and storage solutions. It develops a complete server, modular-based servers, blades, networking devices, security software, and other solutions. Loop Capital maintained its Buy rating for the company and increased its target price from $35 to $40.

2024 was a year to forget for many Super Micro Computer (NASDAQ:SMCI) investors. This year has started on a good note for investors, but not all of that is due to the company’s own performance. Nvidia is about to ramp up its Blackwell GPUs and SMCI finds itself as a beneficiary.

Super Micro’s (NASDAQ:SMCI) expertise in deploying liquid-cooled data centers and its experience in installing the largest data center in the world together with Nvidia will both come in handy when the US government focuses on improving the country’s AI infrastructure. However, analysts rightly point out that due to the company’s internal troubles, the benefits of such developments may not come in a straight line. The ride could be choppy and investors need to be aware of that.

Overall, SMCI ranks 3rd on our list of stocks that analysts are talking about. While we acknowledge the potential of SMCI as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SMCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.