Supermicro price target lowered to $950 from $1,150 at JPMorgan

JPMorgan lowered the firm’s price target on Supermicro to $950 from $1,150 and keeps an Overweight rating on the shares. AI demand sustainability concerns and AI server margin concerns have pressured the AI-levered hardware companies as well as AI server companies, which have failed to convince investors that there is adequate differentiation between different players, the firm says. However, the drivers of the firm’s bullish view on the shares, particularly after the pullback, are driven by a robust capex backdrop and that differentiation in the product will be more evident in relation to revenue growth and growth opportunities, JPMorgan says.