JPMorgan maintains ‘Underweight’ rating on Supermicro (SMCI) with a $23 price target after meeting with management as part of the bus tour. The stock closed up 23c to $44.16 on Monday. The company’s customer base “remains robust, with no significant order movements,” the analyst told investors in a research note. The company says that despite market speculation about customers shifting orders to other suppliers, management has reassured investors that the customer base remains strong, with no significant signs of changes in order allocation. Supermicro is confident in its ability to fulfill orders and is gearing up to introduce new products in the second half of fiscal 2025, JPMorgan added. It says management has also allayed concerns about the closure of operations in Malaysia, confirming that the Malaysia plant is on track to scale up in the first half of 2025. Supermicro also believes that working capital is needed to operate at quarterly sales of $5.5 billion to $6. B remains manageable. Furthermore Nvidia’s (NVDABlackwell’s product line is poised for a significant increase in the second half of fiscal 2025, with Supermicro’s position in custom versions “remaining strong,” JPMorgan said.
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