Super Micro Computer stock rallied on Tuesday after a Wall Street analyst hiked his price target on the shares from $600 all the way to $1,500. Shares in the AI hardware were up more than 7% in late-afternoon trading, making Super Micro Computer the day’s best performing stock in the S&P 500. It was added to the index just last month.
Loop Capital analyst Ananda Baruah said Super Micro Computer stock has more room to grow, Barron’s reports. The hardware maker has had a strong start to 2024, positioning itself as a leader in the rapidly growing AI market.
Super Micro Computer stock was up 8.2% late Tuesday afternoon, to about $955 per share. The stock is up about 234% so far this year, 765% over the last 12 months, 4,200% over the last five years.
That means if an investor had bought $100 worth of Super Micro Computer stock in 2019, it would be worth $4,200 today.
Unlike Nvidia, Super Micro Computer doesn’t make AI chips. It makes hardware that supports AI applications. Baruah said he’s expecting strong March-quarter results, Barron’s reports, and strong June-quarter guidance.