JPMorgan upgrades Super Micro to hold rating

JPMorgan has upgraded Super Micro Computer's stock rating from underweight to neutral. Analyst Samik Chatterjee raised the price target for the shares by $10, bringing it to $45. This change reflects a belief that Super Micro could benefit from Nvidia's successful launch of its Blackwell chip. Chatterjee points out that demand for servers using Nvidia graphics chips is increasing. As Super Micro addresses past uncertainties related to SEC filings, it is expected to see a boost in shipments for Blackwell-based servers. He believes this could lead to a 15% increase in the company’s stock value. For fiscal year 2026, Chatterjee predicts Super Micro’s revenue will grow by $5 billion, reaching $39 billion. This projection suggests a 65% increase compared to the previous year. However, he remains cautious. Challenges related to the company's audit history, new CFO, and an ongoing Department of Justice investigation may impact its earnings. Chatterjee also highlights that increasing competition might affect Super Micro's profit margins and limit earnings growth despite rising revenues. The company faces additional costs for improving internal controls and potential capital funding needs. Currently, Super Micro shares have experienced volatility. They were up over 28% this year, but have fallen around 30% in the last month, partly due to market fluctuations and concerns about slower growth in the AI sector.