After a previous week saw some turbulent action for Super Micro Computer (NASDAQ: SMCI) stock, which surpassed $1,000 with an RSI of 97, reminding us of Gamestop stock-like action, it quickly retraced in the coming days by losing -20% of its value.
However, this quick retracement doesn’t scare off analysts, especially those from Rosenblatt, as they placed a $1,300 price target for this stock.
Considering further losses of -3.52% that SMCI stock in the pre-market trading that has put its price at $775.06 at the time of reporting, this price target indicates a 67% increase from the current levels.
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What is the forecast for SMCI in 2024?
Although Rosenblatt’s Hans Mosemann raised the price target, analysts at TradingView deem such an increase as improbable while assigning a ‘buy’ rating to this stock.
Among 15 experts, 9 gave it a ‘strong buy’ recommendation, 2 opted for ‘buy,’ 3 chose ‘hold,’ and only one advised ‘strong sell.’
In contrast, the price target is $745.47, indicating a further 7.20% decrease.
The most bearish predictions go as low as $250, which would inflict a staggering -68.88% downside for this stock.
Is Super Micro Computer a good buy?
Bank of America analyst Ruplu Bhattacharya recommended buying SMCI stock and established a price target of $1,040. In particular, the analyst noted that the company is poised to benefit from the expansion in demand driven by artificial intelligence (AI), with over 50% of its revenues currently attributed to accelerators such as GPUs.
Wells Fargo analysts have also commenced coverage of SMCI shares, expressing their belief that the momentum surrounding artificial intelligence will persist for SMCI stock. However, Wells Fargo opted for an “equal weight” rating, indicating a neutral stance.
Analysts’ divergent opinions can perplex investors as they offer conflicting perspectives. With bullish, bearish, and neutral positions being taken, investors are encouraged to undertake additional analysis to reach a conclusive decision.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
