JPMorgan starts Supermicro at Overweight on leading compute market position

JPMorgan analyst Samik Chatterjee initiated coverage of Supermicro with an Overweight rating and $1,150 price target. The analyst says the compute cycle is at the forefront of the artificial intelligence revolution. Supermicro is the leading company in the AI compute market, which is “burgeoning with demand” stemming from training AI models, retrieval-augmented generation and eventually AI inferencing workloads, the analyst tells investors in a research note. The firm expects the company’s leadership to continue, led by a balance of custom built solutions and fast time to market.