Although the shares of Super Micro Computer, Inc. (NASDAQ: SMCI) have been suffering poor performance in the past few weeks, certain upcoming events could trigger a price recovery, which is why buying them now, at their current cost, could be a smart investment decision for the future.
As it happens, SMCI stocks, which have risen to the ranks of the hottest assets in the stock market in recent years thanks to the artificial intelligence (AI) boom and the company’s focus on developing high-performance server and storage solutions, have been trading in the red in recent weeks.
Crucial date for SMCI stock
That said, SMCI stock is about to officially become a newest addition to the Nasdaq 100 index (NDX), replacing Walgreens Boots Alliance (NASDAQ: WBA), in an event that will take place before the start of trading on July 22, according to a report published on July 15.
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Indeed, this development, reflecting the stellar advance of SMCI stock compared to the significant dip in Walgreens’ market value, should provide a strong push to the price of SMCI shares in its aftermath, considering that mutual funds and exchange-traded funds (ETFs) tracking the NDX will have to buy its shares.
SMCI stock forecast and price analysis
For the moment, SMCI stock is changing hands at the price of $830.87, which suggests a 1.95% decline on its daily chart, adding up to the dip of 10.32% across the past week and the accumulated loss of 9.69% over the last month, albeit advancing 191.07% this year, according to the data on July 18.
It is also important to note that Wall Street market experts are generally bullish on the future price of SMCI shares in the next 12 months, with an average SMCI stock price target standing at $1,051.11, which represents an increase of 26.51% from its current price, with a ‘moderate buy’ score.
All things considered, the positive SMCI news in the form of its addition to this important index might exercise strong upward pressure on its price. However, trends in the stock market can sometimes change unexpectedly, so doing one’s own research and understanding the risks is critical when investing.
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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.
