It’s been a difficult month for Super Micro Computer (NASDAQ:SMCI), but one analyst thinks it will rebound. The IT company has surged almost 200% over the past six months, enjoying momentum generated by the artificial intelligence (AI) boom. But last month, the heat started to cool, and SMCI stock fell.

This led to speculation that the company was overvalued and that it got too hot too fast. Shares are struggling today amid volatile market conditions, continuing the turbulent trend that the company has experienced this week. However, analyst Matt Bryson of Wedbush is still bullish on the troubled stock. In fact, he recently raised his price SMCI price target, though he maintains a “hold” rating.

Does this mean that investors should expect this complicated company to mount a comeback in the coming months? Let’s take a closer look at Wall Street’s sentiment toward it and assess what is likely to happen in the second half of 2024.

What’s Happening With SMCI Stock

After falling this morning, SMCI stock recently pulled back into the green, though it is currently up less than 10%. This likely doesn’t have much to do with Bryson’s coverage. While the analyst upped his price target from $530 to $800 per share, that only implies an upside of 8.4%. The fact that he still sees SMCI stock as a hold should signal to investors that they should approach it with caution.

Granted, other experts are more bullish on Super Micro Computer, even in the face of its recent downturn. Seven out of 11 Wall Street analysts currently maintain “buy” ratings, while only four call it a “hold.” But even so, there are other factors to consider that suggest the struggling stock isn’t a buy right now. InvestorPlace contributor Viktor Zarev recently argued that SMCI stock isn’t scrutinized enough, citing potential problems with its revenue drivers, IT hardware and software that works with it:

“On paper, this seems like a thrilling combination, as it has allowed SMCI to tailor several applications to any customer,” he notes. “The reality is, however, that scalability could suffer should an AI bubble burst and temporarily impede customer interest in acquisition. Mix in the potential risk of future morally gray business decisions from leadership, and SMCI’s sticker price might need a second look.”

For these reasons, Zarev concludes that SMCI is an overvalued tech stock to sell. Adding to the bearish case against it is the fact that SMCI recently reported mixed earnings for the third quarter, beating on earnings-per-share (EPS) but missing on revenue.

What Comes Next

All this suggests that Super Micro Computer’s future is complicated at best. Even if the majority of Wall Street analysts look favorably on SMCI stock, the company still trades at a high enough price to scare away new investors. That may make it harder for the company to mount a comeback despite the consistent buzz surrounding the red-hot AI market. Other AI stocks can offer investors better exposure, and they can do so at lower price points.

There are some times when positive analyst sentiment makes a stock a buy and times when it doesn’t. As of now, Super Micro Computer simply has too much working against it to justify a bullish take. As Zarev noted, more scrutiny may indeed be necessary to assess it properly.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.