Mizuho Highlights Super Micro (SMCI) Growth Amid Margin Pressure, Competitive Challenges

Super Micro Computer Inc. (NASDAQ:SMCI) is one of the under-the-radar AI stocks to buy. On February 4, Mizuho analyst Vijay Rakesh raised the firm’s price target on Super Micro to $33 from $31 while keeping a Neutral rating. Rakesh informed that the company reported strong results, though competition and margin pressure continue to be challenges.

On the same day, Needham lowered the price target for Super Micro to $40 from $51 with a Buy rating. The firm attributed the company’s FQ2 2026 earnings beat to a major customer’s data center deployment and noted that its Data Center Building Block Solutions is gaining momentum among key customers. The reduced price target reflects multiple compression within the AI hardware sector.

Mizuho Highlights Super Micro (SMCI) Growth Amid Margin Pressure, Competitive Challenges

Barclays also cut the price target for Super Micro Computer Inc. (NASDAQ:SMCI) to $38 from $43 with an Equal Weight rating. In its review of the company’s earnings, Barclays highlighted that December quarter results surpassed expectations for both revenue and earnings.

Super Micro Computer Inc. (NASDAQ:SMCI), together with its subsidiaries, develops and sells server and storage solutions based on modular and open-standard architecture in the US, Asia, Europe, and internationally.

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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Disclosure: None. This article is originally published at Insider Monkey.