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- Super Micro Computer (NASDAQ:SMCI) was in focus on Tuesday as Loop Capital slapped a new Wall Street high price target on shares, citing increased confidence in its long-term potential in artificial intelligence.
- Shares rose nearly 4% in mid-day trading.
- The investment firm, which raised its price target to $1,500 and maintained its Buy rating on Super Micro, is gaining more confidence in both its position in the generative AI server industry, as well as it increasing its lead over competitors thanks to both complexity and ability to scale up.
- The stock's valuation is likely to stay a conversation point, but the fundamental thesis is supportive of an earnings multiple between 20 and 30, Loop Capital said.
- Super Micro could end fiscal 2026 with between $30B and $40B in revenue and earnings of $50 to $60 per share, making the earnings multiple between 25 and 30, Loop Capital said.
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