SMCI: This AI Server Stock Is Facing Bottlenecks-but Growth May Be Coming Fast

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the Top AI Stocks Taking Wall Street by Storm. On August 6, Barclays analyst George Wang raised the price target on the stock to $45.00 (from $29.00) while maintaining an Equalweight rating.

Analysts at Barclays noted that revenue challenges at SMCI stemming from capital constraints have been resolved, with large customer orders slated for recognition in the September and December quarters. Bottlenecks, however, remain.

“However, bottlenecks in growth remain with implied FY revenue cadence more back-end loaded (given FQ1 top-line guidance of only ~$6.5Bn at the midpoint with FY26 revenue guidance of at least $33Bn). Chip and resource availability, as well as customers waiting for GB300s are driving the bottleneck.”

SMCI did introduce its DCBBS (Data Center Building Block Solutions) in the previous quarter, anticipating increasing customer adoption throughout fiscal 2026. The solution is not only attractive to customers but is also likely to be margin accretive over time.

The firm also discussed SMCI’s gross margins miss.

“GM missed in the Q and FQ1 margin guidance was weaker than expected, due to product customer mix and production ramp learning curves, respectively. Two main drivers to improve GM, according to management, are both DCBBS and having fast time-to-market capabilities. We model sequential growth throughout FY26 to account for Blackwell ramp and forecast 11.3% GM, roughly flat (10bps improvement) from FY25, given competitive environment and manufacturing challenges and complexities cited for the flat Q/Q FQ1 GM (despite almost ~$1Bn incremental revenue).”

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.

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