To wit, Citi analyst Asiya Merchant has now pegged a $39 stock price target on Super Micro Computer, while initiating coverage with an overall 'Neutral/High Risk' rating. Merchant notes: "With 8% of AI server revenue share, Supermicro remains one of the leading players to GPU-as-a-Service cloud providers and enterprises, and we expect Supermicro to continue to benefit from broader secular trends in AI-driven infrastructure. " Nonetheless, the Citi analyst feels that an "increasingly competitive AI Server landscape" and the attendant pressure on margins warrants caution. In a critical insight, Merchant notes that Super Micro Computer shares are currently trading at a multiple of just 9-10x its Next Twelve Months (NTM) P/E ratio, which is below the 5-year median multiple of 11-12x.