Super Micro (SMCI) Is One of the AI Stocks Analysts Are Watching After Q2 Blowout

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 10 AI Stocks Analysts Are Watching. On February 4, Rosenblatt analyst Kevin Cassidy reiterated a Buy rating on the stock with a $50.00 price target. The rating affirmation follows SMCI’s robust fiscal Q2 2026 results.

SMCI’s had a significant earnings and revenue beat, posting an earnings per share (EPS) of $0.69, a 40.82% surprise over the anticipated $0.49. Meanwhile, revenue reached $12.7 billion, outperforming the forecasted $10.42 billion by 21.88%.

The firm highlighted how SMCI’s revenue of $12.7 billion represented a 153% quarter-over-quarter growth. This growth was attributed to ramping production of the GB300 system, which it noted to be “one of the most complicated systems ever produced.”

Rosenblatt anticipates that SMCI will maintain its current revenue and production rate in the third quarter of fiscal year 2026. It is also likely to expand the adoption of its “One-Stop Shop” DCBBS (Data Center Building Block Solutions) offering.

Through DCBBS, customers are able to deploy AI factories faster and with engineering assurance, a significant opportunity for SMCI to expand its gross margins as its customer base grows.

With operating expenses running at roughly 2% of revenue, the firm said that any improvement in gross margins would likely translate entirely into earnings. However, it has moderated its near-term margin outlook as it continues to see “many opportunities to return to double-digit GM.”

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.

While we acknowledge the potential of SMCI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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