10 AI Stocks Analysts Are Watching

8. Super Micro Computer, Inc. (NASDAQ:SMCI)

Number of Hedge Fund Holders: 42

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 10 AI Stocks Analysts Are Watching. On January 22, BofA Securities analyst Ruplu Bhattacharya reiterated an “Underperform” rating with a $34.00 price target. The firm sees robust AI server demand for SMCI, but cautions about margin profile and execution risks limiting upside.

BofA noted that while its revenue estimates for FY26/27 are already above Street expectations, it sees potential for further upside. There is robust demand for AI servers and racks, with SMCI bearing the potential to witness growth from existing and new customers both.

However, the firm also cautioned how the market remains very competitive, and that future large deals may come at low margins amid aggressive bidding. SMCI ramped the GB300 platform in the December quarter (F2Q26), although revenue recognition of the large $12 billion design win announced last year would depend on manufacturing yield and timing of shipments.

Looking ahead, the firm sees margins remaining pressures, and keeps it estimates unchanged.

We see margins remaining pressured by overhead costs, expedite costs, and investments in additional engineering support and services, and so future revenue growth could be low-calorie. Reiterate Underperform. No change to estimates. PO stays at $34 on 15x our C26E EPS estimate of $2.24.

Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing, AI, and edge computing worldwide.