The 3 Best Momentum Stocks to Buy in June 2023

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Wall Street is finally becoming much more upbeat about the economy, as more investors internalize the realities that inflation is dropping and that new technologies, including artificial intelligence (AI), are going to boost the economy and stocks. Moreover, many on the Street are starting to realize that the economy can prosper and stocks can rise even if the Fed is not cutting interest rates. Thanks to these developments, a multitude of stocks are currently climbing sharply, giving investors many excellent momentum stocks to buy in June.

Not only are these three of the best momentum stocks to buy now, but their valuations are quite reasonable, and their long-term outlooks are very strong. Therefore, these names are appropriate for short-term, medium-term, and long-term investors.

Super Micro Computer (SMCI)

Server and storage solutions provider Super Micro Computer (NASDAQ:SMCI) is definitely a high potential momentum stock. Attributes working in the company’s favor include its low-cost, low-power solutions and its utilization of AI. Further, the company’s main customers are data centers, which is a rapidly expanding market. SMCI will also benefit from the spread of AI, since data centers will use SMCI’s servers and storage to foster the development of their AI technologies.

In 2023, SMCI has soared an incredible 215%. In just the last month its jumped 96%. Investment bank Loop Capital recently increased its price target on SMCI to $200 from $150 and maintained a “buy” rating on the shares. In addition to the positive catalyst that SMCI is obtaining from AI, the firm’s ability to provide server customization is an important competitive advantage for it, Loop believes.

American Superconductor (AMSC)

American Superconductor’s (NASDAQ:AMSC) shares have zoomed 27% since the company reported its fiscal fourth-quarter results.

That’s because the company is moving rapidly towards profitability Its partnership with Indian wind-turbine maker Inox has been rejuvenated, and its revenue from its electrical-control products continues to climb significantly. Moreover, AMSC believes that its business with the U.S. Navy could turn profitable in the not-too-distant future. Plus, AMSC reported that it’s in talks with several utilities about projects related to its system which makes electrical grids more resilient. Even better, the company claimed that it expects its gross margins to increase going forward.

In the wake of AMSC’s results, investment bank Craig-Hallum raised its price target for the company to $9 from $8.  The firm believes that the company has strong momentum and notes that its backlog has reached record levels.

Aurora Innovation (AUR)

Aurora Innovation (NASDAQ:AUR), is a company which has created autonomous-driving software for trucks. They have garnered a lot of interest with multiple large transportation companies conducting ongoing trials of its offering. In April, Aurora announced that all of the necessary features to make their vehicles fully autonomous had been implemented. And then in May, FedEx (NYSE:FDX) announced it would be extending its pilot program with Aurora.

Now the Street apparently has finally noticed Aurora’s huge potential, as shares have soared over 50% in the last week. The catalyst for the rally was a very bullish note from investment bank  Canaccord Genuity. In the note, the bank stated that AUR was poised to benefit from its self-driving technology and its “strong, visionary management.” Most importantly, the bank thinks that the company can get a strong foothold in the autonomous driving market thanks to its early mover and competitive advantages.

As of the date of publication, Larry Ramer owned shares of SMCI, AMSC, and AUR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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