Super Micro Computer Stock Ahead of Nvidia’s Big Earnings Report Today – Is This a Buy?

Super microcomputer (NASDAQ: SMCI) Stocks headed lower on Wednesday, falling 7.5% as of 1:38 p.m. ET, according to data from S&P global market information.

As macroeconomic concerns mounted, artificial intelligence (AI) stocks largely retreated in Wednesday trading. Adding another source of uncertainty to the mix, Nvidia is expected to announce fourth-quarter results after the market closes.

Nvidia’s share price rose 212% over the past year as the company’s sales and profits were boosted by a rising wave of AI-driven demand, but investors appear concerned that the stock may now be priced for perfection. The graphics processing unit (GPU) leader’s fourth-quarter results are likely to have a significant near-term impact on Supermicro and other companies. AI Stocksand investors are pulling back somewhat from the category to minimize their risk.

Is It Time to Buy Super Micro Computer Stock?

After the recent sell-off, shares of Supermicro are now down about 29% from the peak they reached earlier this month. But there’s no doubt that this is still a risky and profitable strategy, even after the recent price drop.

It is striking that the share price of the server and data storage company lost ground on Wednesday, despite the very optimistic reporting from analysts published on Tuesday. Rosenblatt’s analyst team raised its one-year price target from $700 per share to $1,300 per share. Based on Supermicro’s current share price, that would represent an upside of about 82.5% for the coming year.

In their article, Rosenblatt analysts pointed to the continued expansion of the AI-focused server market and expectations of more market share gains for Supermicro as catalysts that would increase its share…

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