All the market-moving Wall Street chatter from Wednesday

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All the market-moving Wall Street chatter from Wednesday

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and ongoing AI demand. “With the recent stock correction, valuation is more reasonable,” wrote Barclays analyst Tim Long, noting that the 11% premarket drop suggests shares now trade at 15 times 2025 EPS estimates. “While the stock might be in a penalty box near term on [****** margin] headwinds, we continue to highlight time to market and [direct liquid cooling] share gains for SMCI.” The server company topped fiscal fourth-quarter revenue estimates but fell short of earnings expectations. ****** margins dropped to 11.2% from 17% in the year-ago quarter and from 15.5% in the third quarter. Super Micro also announced a 10-for-1 stock split. The stock has slumped 27% over the last month amid a reckoning in technology stocks and the broader market. Shares have also lost nearly half their value since hitting a closing high in March. JPMorgan analyst Samik Chatterjee reiterated his outperform rating and $950 price target, referring to Super Micro as a “show-me” story. He expects ****** margins to improve in the fiscal fourth quarter and return to the long-term range by 2025 as discounts dwindle and manufacturing efficiencies pick up. “Admittedly, SMCI will be a show-me story on margin improvement following challenging margins reported in F4Q, and we expect the P/E multiple attributed to the shares to be contingent on delivery to the margin improvement expectations,” he wrote, with the target reflecting 54% upside from Tuesday’s close. To be sure, some on Wall Street are treading carefully. Goldman Sachs analyst Michael Ng reiterated a neutral rating and moved his price target to $675 from $775 a share, citing “uncertainty” surrounding the long-term

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for margins. “We remain cautious on increased competition in the AI server market from traditional vendors and [original design manufacturers] as well as from SMCI concentration risk in AI shipments with ~5-7% of unit shipments accounting for ~60% of revenue,” said Wells Fargo’s Aaron Rakers. — Samantha Subin 5:54 a.m.: Piper Sandler reiterates AMD as a top pick Nvidia gets most of the fanfare in the semiconductor rate, but Piper Sandler thinks investors need to also pay attention to AMD . Analyst Harsh Kumar reiterated the stock as a top pick. He has an overweight rating on shares and a price target of $175, which implies upside of 34%. “We continue to like AMD especially given the recent industry pullback. Our expectations see AMD taking roughly 20% share of the $400B accelerator market by 2028. Additionally, reaffirmed by last week’s INTC (not covered) results, we see AMD gaining significant share in the traditional server market,” Kumar said in a note. Market share gains for AMD “in the traditional server market are expected to continue given the lackluster ********** from industry incumbents INTC. We see this transition continuing to take shape over the next several years as AMD generates additional wins at key customers at the expense of INTC,” the analyst added. AMD shares have struggled this year, losing more than 11%. AMD YTD mountain AMD year to date — Fred Imbert

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#marketmoving #Wall #Street #chatter #Wednesday

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