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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.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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