Super Micro Computer already discounting solid upside

Wells Fargo initiated coverage of Super Micro Computer (NASDAQ:) with an Equal Weight rating and On-site traders and special tradersa $960 per share price target on Friday.

Analysts said they believe the AI momentum will continue, but the stock is already discounting solid upside.

"SMCI's AI-fueled fundamental momentum, underpinned by engineering-first differentiation, has been nothing less than remarkable and should support some sustainable valuation re-rate," said the firm.

The firm believes that SMCI can support a 15- to 18x near-term P/E. However, they note that this leaves them to believe shares are already discounting a path to $45 per share.

"We're positive on SMCI's position to [continue] to capitalize on AI infra buildouts, but see shares as already reflecting +$40/sh EPS upside by 2025," concluded the firm.

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