Super Micro Computer Surged Today — Is It Too Late to Buy the Red-Hot Artificial Intelligence (AI) Growth Stock?

Super Micro Computer (NASDAQ: SMCI) stock jumped again in Wednesday’s trading. The company’s share price closed out the daily session up 11.3%, according to data from S&P Global Market Intelligence.

On Tuesday, Barclays analysts published a note on Super Micro  (known as Supermicro) stock. The firm’s analysts raised their one-year price target from $691 per share to $961 per share due to indications that artificial intelligence (AI) would continue to power strong demand for Supermicro’s rack servers. Based on today’s closing price, the new target from the Barclays analysts suggests additional potential upside of 9% for the stock.

Additionally, it’s likely that Supermicro stock got a boost from a bullish report on Nvidia stock from Susquehanna that was published today. In the Susquehanna note, analyst Christopher Rolland said that he expected Nvidia to record fourth-quarter revenue that beat the market’s current targets thanks to AI-driven demand. With Supermicro also benefiting from surging AI-related related demand, good news for Nvidia could bode well for the server and storage company’s own outlook.

Is Super Micro Computer stock still a buy?

Supermicro’s stock has been on an incredible tear. The company’s share price is already up roughly 210% across 2024’s trading, and it’s rocketed 872% higher over the last year.

To its credit, the company has been posting impressive results to back up the rally. At the end of January, Supermicro published results for the second quarter of its current fiscal year — a period that closed at the end of last December. In addition to posting sales and earnings performance in the period that came in better than the hugely improved guidance it issued shortly before publishing the report, forward guidance also crushed Wall Street’s targets.

The company expects to record revenue between $14.3 billion and $14.7 billion in its current fiscal year, suggesting that sales will more than double compared to the $7.12 billion in sales that it…