While stock market attention has centered around the technology sector, with a particular focus on today’s AI developments, some stocks have received an unfair share of the price action and favorability. Today, while the industry seems to be cooling down a bit, it may be time for other names that are “lagging behind” to start catching up with the leaders.
Super microcomputer today
Super micro computer
As of 01/21/2025 at 04:00 PM ET
- 52 week range
- $17.25
▼
$122.90
- P/E ratio
- 16.29
- Price target
- $66.89
But this has nothing to do with momentum; In fact, it is the opposite of bullish momentum that investors should be looking for today. In short, everyone is always afraid to buy stocks that have suffered a loss, for fear of repeating past behavior in the future. This may be the case, but not for stocks Super Micro Computer Company Nasdaq: SMCI.
After poor performance over the past 12 months, this declining company may be vying for the leadership position, looking to counter the price action seen in… Nvidia company Nasdaq: Out And other emerging names in this sector. This stock’s exposure to both the hardware and software demands of tomorrow’s computing places it at a critical juncture, with the potential to double an investor’s capital or cause a significant capital loss.
Wall Street acquires shares of Super Micro Computer
Just like individual investors, Wall Street analysts are always wary of upgrading or replicating the bullish outlook for a stock that has been battered recently. Analysts risk damaging their reputations or even losing their jobs if they back the wrong horse.
With this in mind, any optimistic view of a stock dominated by bearish price action should carry much more weight. That’s why today’s consensus price target of $66.9 per share is so important for Super Micro Computer stock, because it implies a net upside of 105.5% from where it’s trading today.
These analysts have found enough reasons to believe that Super Micro Computer stock may have bottomed here, but they’re also not the only ones. Over the past month, the company’s short interest has fallen by as much as 13.8%, indicating a major sign of bearish capitulation and a shift in sentiment.
Super Micro Computer stock forecast today
$66.89
He catches
Based on 18 analyst ratings
| High expectations | $135.00 |
|---|---|
| Average expectations | $66.89 |
| Low expectations | $23.00 |
Details of Super Micro Computer stock forecasts
Since bears realize that all potential negative developments have already been priced into the stock price, closing their short positions will also leave room for new buyers. Recently, a few institutional buyers have taken up this space.
As of January, two buyers had amassed multimillion-dollar Super Micro Computer stock positions. Starting with Janney Montgomery Scott and its $2.1 million stake, Teamwork Financial Advisors will follow with a $1.2 million stake. However, buying activity in the previous quarter may be of greater interest to investors.
State Street reported a 4.3% increase in its holdings, bringing its net position to a high of $890.3 million for Super Micro Computer as of November 2024. After all, the stage is set for a potential rally with this name.
What will push the stock up?
Little does the market know that the days of semiconductor superiority are beginning to fade, however, a new era of technology is being prepared in the background. This new era will belong to quantum computing technology and its backers, so it’s only natural that capital will start looking for the next NVIDIA.
While some see Alphabet company Nasdaq:Google As the likely winner, the $1 trillion-plus company is unlikely to deliver the triple-digit rally Super Micro Computer shares promised. Nor is it the semiconductor side of the industry.
Instead, data center hardware and infrastructure are more likely to give stocks like Super Micro Computing a shot at the top, and the market is actually discounting that very close reality significantly today. Wall Street analysts now expect up to $7.60 in earnings per share (EPS) for the same quarter next year, laying a bullish foundation.
This massive increase will boost the stock’s valuation to a price that could exceed current price targets compared to today’s EPS level of $0.62. Of course, there’s the whole accounting scandal that sent the stock down a dismal 23% from its 52-week high.
Super Micro Computer, Inc. price chart (SMCI) for Wednesday, January 22, 2025
However, at this low price, the risk of the company falling to a lower level is severely limited compared to how high the stock could go. Wall Street often refers to this as tail risk trading, which is great for making a lot of money by risking only a fraction up front.
This tail risk is something investors can enjoy today when considering buying Super Micro Computer stock.
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