** Shares of server maker Super Micro Computer SMCI.O rise 4.2% to $40.66

** J.P. Morgan upgrades SMCI rating to "neutral" from "underweight" as co has cycled past uncertainty regarding pending SEC filings

** Brokerage raises PT to $45 from $35, representing ~15% upside to stock's last close

** Co is on the cusp of benefiting from ramp in server shipments which are equipped with Nvidia's NVDA.O Blackwell chips; these are already seeing materially higher demand than prior generation - JPM

** "We are cautious relative to gross margins given the increasingly competitive landscape and expect gross margin moderation in FY26 over FY25," brokerage says

** JPM expects SMCI could face challenges related to working capital starting from Q4 fiscal 2025 and continuing into fiscal 2026 to make investments in inventory for supporting revenue growth

** Five of 14 brokerages rate the stock "buy", seven "hold" and two "sell"; their median PT is $54.50 - LSEG

** Up to last close, SMCI up ~28% YTD

(Reporting by Jaspreet Singh in Bengaluru)

((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))