Super Micro Computer, a company specialized in AI server production, might find itself on an upswing, thanks to Nvidia’s success with its Blackwell chips, says JPMorgan. Analyst Samik Chatterjee has upgraded Super Micro’s stock rating from underweight to neutral, and has increased his price target by $10, setting it at $45. He predicts that with this new price target, Super Micro shares, which are geared up with Nvidia’s graphics processing chips, could climb about 15% as Nvidia ramps up supply of its Blackwell chips. “The company has overcome the uncertainties around its pending SEC filings and stands poised to benefit significantly from the increased demand for Blackwell-based servers, which are already outpacing previous generation’s demand, coupled with the revenue boost from higher average selling prices,” Chatterjee elaborated in his Friday client briefing.
He upped his revenue projection for fiscal year 2026 by $5 billion, bringing it to $39 billion, suggesting a robust 65% growth compared to the previous year. However, Chatterjee remains somewhat cautious, given Super Micro’s history with challenging audit terms and filing issues that might overshadow its earnings multiple. Furthermore, he pointed out the new CFO transition and the conclusion of a Department of Justice investigation into the company’s accounting methods as additional factors that could affect the company.
Competition in the AI server market is heating up, and Chatterjee believes this could pressurize Super Micro’s gross margins and constrain its earnings growth relative to its revenue expansion in fiscal year 2026. There might also be challenges from expenses related to internal control and potential future capital requirements.
Chatterjee summarized the outlook by weighing the upcoming strong revenue growth against possible concerns about how margins will evolve. It’s worth noting that Super Micro shares have been quite erratic this year. Back in February, the company shared a positive outlook for its 2026 fiscal year and submitted its delayed financials to comply with Nasdaq’s listing requirements, spurring a rise in stock prices. Even though the stock is up over 28% year-to-date, it has seen a drop of about 30% in the past month due to a broader market downturn and worries over a potential slowdown in AI industry growth.
