Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Super Micro Computers (NASDAQ: SMCI) (also known as Supermicro) share several things in common. All three companies have profited from the surging demand for artificial intelligence (AI). All three have declared 10-for-1 stock splits in 2024. Each stock has soared this year but pulled back significantly in recent weeks.
Another common denominator between Nvidia, Broadcom, and Supermicro is that they’ve all been favored by analysts. But which stock-split stock does Wall Street like the most now?
The winner based on buy recommendations
Perhaps the easiest way to determine which of these stocks Wall Street is most bullish about is to look at the buy recommendations for each stock. And one of them appears to be the hands-down winner.
Of the 29 analysts surveyed by LSEG in September who cover Broadcom, 10 rate the stock as a “strong buy.” Another 17 recommend Broadcom as a “buy.” In other words, 93% of analysts like the stock. By the way, none of the surveyed analysts recommend selling Broadcom. The two outliers rate the stock as a “hold.”
Nvidia comes in a distant second place. LSEG surveyed 38 analysts this month who cover the stock. Seven recommended Nvidia as a “strong buy” with another 14 recommending it as a “buy.” That’s 55% of analysts with a positive view. Most of the other analysts rate Nvidia as a “hold.” However, one analyst pegged the stock as an “underperform” with another recommending selling it.
That leaves Supermicro in the third spot. Of the six analysts surveyed by LSEG in September, only two (33%) recommended buying the stock. The other four analysts rated Supermicro as a “hold.”
The winner based on price targets
However, there is another method to assess what Wall Street thinks about stocks. While analysts make buy, hold, or sell recommendations (or their equivalents), they also issue 12-month price targets.
Using this approach, Supermicro comes out on top. The average price target for the stock reflects an upside potential of 105%. The most optimistic analyst thinks Supermicro’s share price can…
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