With SMCI stock through the roof, investors ask which company is next?
Super Micro Computer (NASDAQ:SMCI) stock continues to climb, now up over 315% for the year-to-date. Shares of the server and storage vendor don’t seem like they are slowing down just yet. SMCI stock is now on the verge of breaking above $1200 a share.
Super Micro Computer is a specialized supplier of high-performance server and storage systems. It has longstanding partnerships with key artificial intelligence (AI) component suppliers, including NVIDIA Corporation (NASDAQ:NVDA), AMD (NASDAQ:AMD), and Intel (NASDAQ:INTC), which has helped transform it into a leading AI infrastructure company.
However, SMCI’s upward trajectory has prompted the burning question of which company is poised to replicate its remarkable success.
The company’s premium valuation has resulted in Goldman Sachs taking a cautious view of the stock, initiating it with a Neutral rating and $941 price target in a research note earlier this month.
While the investment bank believes the company is an AI winner, it believes it is fairly valued. According to Goldman Sachs, the company’s position in the AI market helps to justify its stock's nearly 1,000% move since the beginning of 2023, but it notes that it trades largely in line with Nvidia.
“SMCI is very well-positioned to serve demand from AI CSP’s over the next few years, but serving enterprise AI infrastructure demand in the years after likely will be more competitive, particularly given more enterprise-focused IT hardware suppliers such as DELL and CSCO,” said the investment bank.
On the other hand, Argus recently initiated SMCI with a Buy rating and $1,350 price target, saying it is a «leading computer and server provider for the age of generative AI.»
The firm noted SMCI is “experiencing accelerating
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