A Stock That Increased 764% in a Year Just Rose Another 18% – What’s Behind the Unending Rally?

According to JPMorgan, the stock of Super Micro Computer has been skyrocketing over the past year and shows no signs of slowing down.

JPMorgan recently upgraded the stock to “Overweight” and set a target price of $1,150, implying an 18% potential increase from the previous week’s close.

JPMorgan states that Super Micro is a leading company in the AI computing market, which is experiencing significant growth due to the increasing demand for AI model training.

Super Micro Computer’s stock has surged 764% over the past year as the company’s AI server business boomed. The sharp increase in stock price has propelled Super Micro Computer from the Russell 2000 index to join the S&P 500. The company is now valued at around $60 billion.

JPMorgan expects Super Micro Computer to maintain its leading position as a breakthrough player in the server market, providing high-performance servers that support AI.

The bank predicts that this leadership position will be reinforced by the balance between flexible solutions and quick time-to-market. JPMorgan suggests that investors should consider this sector, as the overall market is rapidly expanding with significant profit potential.

According to Yahoo Finance