Argus Research Turns Bullish on Super Micro Computer (SMCI) Following Q1 2026 Results

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 11 best AI infrastructure stocks to buy right now.

Argus Research Turns Bullish on Super Micro Computer (SMCI) Following Q1 2026 Results

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On November 7, 2025, Argus Research upgraded Super Micro Computer, Inc. (NASDAQ:SMCI) from “Hold” to “Buy” with a $64 price target. Reflecting on the company’s Q1 2026 results, the investment firm highlighted its long-term AI infrastructure opportunity, supported by its expanding backlog, which already hit the $13 billion mark. Despite the company’s short-term revenue and margin struggles, the firm believes SMCI’s shares are trading at less than half the peak price seen at the start of 2024. Moreover, the firm sees a strong outlook for Super Micro Computer, Inc. (NASDAQ:SMCI), driven by robust demand for its products due to generative AI.

Meanwhile, on November 4, 2025, Super Micro Computer, Inc. (NASDAQ:SMCI) released fiscal Q1 2026 earnings, reporting $5 billion in revenue, down 15% YoY and 13% sequentially. The revenue was driven by AI GPU platforms, which accounted for over 75% of total sales. Its record $13 billion backlog included one of the largest deals in its 32-year history. Looking ahead, the company reaffirmed its full-year revenue outlook of at least $36 billion. Meanwhile, it expects revenue to lie between $10 billion and $11 billion in the second quarter.

Operating across the U.S., Asia, and Europe, Super Micro Computer, Inc. (NASDAQ:SMCI) designs and sells modular server and storage solutions.

While we acknowledge the potential of SMCI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SMCI and that has 100x upside potential, check out our report about this cheapest AI stock.

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