Two Wall Street analysts think Super Micro Computer's stock could nearly triple in value.
Nvidia has led the S&P 500 (higher this year amid frenetic interest in artificial intelligence (AI). The stock has surged 136% since January, and Wall Street analysts forecast median upside of 30% from the current share price of $115. But betting on a single AI stock is a bad strategy.
Consultancy PwC estimates AI will add more than $15 trillion to the global economy by 2030, and numerous companies will benefit as the technology diffuses through different industries. So, rather than focusing solely on Nvidia, investors should forget the chipmaker (temporarily) and consider server maker Super Micro Computer.
Super Micro has a 10-for-1 stock split scheduled for late September, such that shares will begin trading on a split-adjusted basis on Oct. 1. Two analysts, Nehal Chokshi at Northland Securities and Hans Mosesmann at Rosenblatt Securities, value Super Micro at $1,300 per share, implying 195% upside from its current share price of $440.
Here's what investors should know.
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