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[QUOTE="Munyaradzi Mafaro, post: 35622, member: 636"]
Super Micro Computer has caught many eyes as it sells GPU services and water-cooled AI racks during the growing interest in artificial intelligence. Citi recently started watching this high-flying stock with some caution.

Citi analyst Asiya Merchant set a $39 price target for Super Micro Computer shares. The analyst gave the stock a Neutral rating with High Risk. Merchant worries about tougher competition in AI servers and pressure on profits.

The analyst pointed out that Super Micro Computer trades at 9-10 times its expected earnings for the next year. This sits below its normal five-year range of 11-12 times earnings. Merchants think this lower price makes sense because of trade tariff questions and strong rivals.

Apple reportedly ordered about $1 billion worth of NVIDIA GB300 NVL72 racks from Super Micro Computer and Dell. People believe Apple wants to build an AI system to make Siri smarter.

Super Micro Computer shares rose over 2 percent in early morning trading. The stock has gained around 20 percent this year. Goldman Sachs named it one of the best-performing hardware stocks. The company expects to make $40 billion in revenue for its 2026 fiscal year as it ships more Blackwell-based products.
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