The largest bank in the United States, JPMorgan, has upgraded Super Micro Computer Inc., citing a potential boost from Nvidia’s Blackwell chip ramp-up.
Analyst Samik Chatterjee lifted his rating from underweight to neutral and increased his price target by $10 to $45, forecasting a 15% upside for the AI-powered server maker.
Samik upgrades Super Micro, maintaining the Nvidia Blackwell chip ramp rating
Chatterjee’s optimism stems from the strong demand for Nvidia’s Blackwell-based server shipments, which he notes are experiencing higher interest than prior-generation chips.
This, coupled with an improved supply chain from Nvidia, could drive substantial revenue growth for Super Micro.
Super Micro Computer made headlines on Friday by enhancing the artificial intelligence server company. In addition, the uncertainty about its financial filings was cleared up. As a result, the premarket price of shares increased by 1%.
The JPMorgan analyst said:
The company has cycled past the uncertainty about 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 the prior generation, with additional benefit to revenue growth from higher ASPs.
Samik Chatterjee
Furthermore, Chatterjee increased his revenue projection for fiscal year 2026 by $5 billion to $39 billion, indicating a growth of roughly 65% from the previous year.
However, he warned that Super Micro’s gross margin could moderate, and earnings expand at a slower rate than sales in fiscal 2026 due to a more competitive environment. He admits to concerns about uncertainty over margin results but sees potential for substantial revenue strengthening.
The analyst also pointed to worries about Super Micro’s “challenging history as it pertains to audit and filing related matters that likely will be an overhang on the earnings multiple,” as well as the company’s recent management shakeups, including the CFO switch, and the resolution of a Department of Justice probe into its accounting methods.
The sell-off last year largely was spurred by worries about SMCI’s corporate governance standards, which have long been a major hurdle for the company.
Earlier, the two companies had been engaged in a historical tussle over Blackwell server contracts that broke their business partnership and affected the engineering for the supply of Nvidia Blackwell GPUs. Despite such challenges, Super Micro could benefit from Nvidia’s Blackwell success.
Headwinds may also arise from costs associated with the business’s internal controls, and potential capital raises down the line.
The NVIDIA Blackwell Ultra AI factory platform ushers in the age of AI reasoning
NVIDIA recently unveiled the Blackwell Ultra, an evolution of the NVIDIA Blackwell AI factory platform designed to usher in the era of AI reasoning.
Blackwell Ultra makes AI reasoning possible, as AI models can use the platform’s enhanced computational capacity with the NVIDIA GB300 NVL72 to investigate various problem-solving strategies and break down requests into several steps, producing responses of superior quality.
The NVIDIA GB300 NVL72 connects 36 Arm and 72 Blackwell Ultra GPUs to achieve this. Neoverse-based NVIDIA Grace™ CPUs in a rack-scale design that functions as a single, enormous GPU designed for scaling during testing.
By improving training and test-time scaling inference, which is the art of using more computation during inference to increase accuracy, NVIDIA Blackwell Ultra enables organisations worldwide to speed up applications like physical AI, agentic AI, and AI reasoning.
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