According to a BofA Global Research analyst, Super Micro Computer is projected to have significantly higher earnings in the coming years than what is currently estimated. Ruplu Bhattacharya from BofA estimates that the manufacturer of high-performance servers could generate $35.66 per share in earnings by fiscal year 2025. This indicates a 25% increase compared to the consensus estimate of $28.62 per share provided by FactSet.
The gap between estimates widens even further in 2026, with BofA estimating earnings of $44.67 per share, a 46% increase from the consensus estimate of $30.60 per share.
Bhattacharya believes that Super Micro will continue to benefit from the growing demand for artificial intelligence servers. According to Bhattacharya, the market for AI servers is expected to be larger than what current models predict. In a report initiating coverage on the stock, Bhattacharya rates Super Micro shares as a Buy and sets a price target of $1,040.
Super Micro's shares have been performing exceptionally well, with a 10% increase on Thursday, reaching $968.60. The stock has surged over 900% since closing at $93 a year ago.
Furthermore, Super Micro delivered outstanding quarterly results in late January and raised its fiscal 2024 revenue forecast to a range of $14.3 billion to $14.7 billion, surpassing the previous forecast of $10 billion to $11 billion.
After the earnings report, Kim suggested that shareholders consider taking profits at the $800 level.
PREVIOUS POST
