** Shares of Super Micro SMCI.O fall 17.2% to $47.59 in premarket trading
** On Tuesday, the AI server maker missed Q4 estimates as it struggled against bigger server makers in the AI hardware race
** J.P.Morgan trims PT by $1 to $45; maintains stock rating at "neutral"
** Brokerage remains on the sidelines on SMCI, citing near- to medium-term challenges in managing growth and margins, with higher-margin Direct Liquid Cooling Building Block Solutions (DCBBS) opportunities expected to take time to scale
** Revenue for the quarter was $5.76 billion, compared with analysts' average estimate of $5.89 billion, according to data compiled by LSEG
** "The company is on the cusp of benefitting from the ramp in the Blackwell-based server shipments, which are experiencing significantly higher demand than previous generations"- JPM
** On average, stock is rated "hold" by 19 analysts; median PT is $37.97 - data compiled by LSEG
** Up to last close, stock had risen ~88% YTD
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.