Super Micro upgraded to Neutral at JPMorgan on cycling past filing challenges

JPMorgan analyst Samik Chatterjee upgraded Super Micro (SMCI) to Neutral from Underweight with a price target of $45, up from $35. The company has cycled past the uncertainty in relation to pending SEC filings and is on the cusp of benefitting from the ramp in Blackwell based server shipments, which are already seeing materially higher demand than prior generation, the analyst tells investors. However, while the firm is raising forecasts for revenues in next 12 months given positive datapoints in recent weeks relative to a better supply ramp from Nvidia (NVDA), it balances the upcoming strong revenue progression with potential concerns around margin trajectory in an increasingly competitive landscape that it sees driving aggressive pricing and gross margin pressures, the analyst tells investors.