Super Micro Computer gains, JPM raises to 'neutral'

Shares of server maker Super Micro Computer SMCI.O rise 4.2% to $40.66

J.P. Morgan upgrades SMCI rating to "neutral" from "underweight" as co has cycled past uncertainty regarding pending SEC filings

Brokerage raises PT to $45 from $35, representing ~15% upside to stock's last close

Co is on the cusp of benefiting from ramp in server shipments which are equipped with Nvidia's NVDA.O Blackwell chips; these are already seeing materially higher demand than prior generation - JPM

"We are cautious relative to gross margins given the increasingly competitive landscape and expect gross margin moderation in FY26 over FY25," brokerage says

JPM expects SMCI could face challenges related to working capital starting from Q4 fiscal 2025 and continuing into fiscal 2026 to make investments in inventory for supporting revenue growth

Five of 14 brokerages rate the stock "buy", seven "hold" and two "sell"; their median PT is $54.50 - LSEG

Up to last close, SMCI up ~28% YTD