KeyBanc Begins Coverage of Super Micro Computer (SMCI) Stock

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the Top 10 AI and Technology Stocks to Buy According to Analysts. On June 26, KeyBanc initiated coverage of the company’s stock with a “Sector Weight” rating. As per the firm’s analyst, Super Micro Computer, Inc. (NASDAQ:SMCI) might have set the expectations too high for FY 2026, considering that the overall end market seems to be decelerating and getting more competitive.

The firm highlighted concerns regarding the competitive nature of the server market, and tags it as one of the most competitive businesses in the broader IT Hardware space. It also expects that these competitive and structural factors can pressurize gross margins. Considering the lower growth, lower margins, and the company’s lack of FCFs, KeyBanc took a more cautious view.

Super Micro Computer, Inc. (NASDAQ:SMCI) announced that liquid-cooled and air-cooled GPU solutions would be available with new AMD Instinct MI350 series GPUs, optimized for unparalleled performance, maximum scalability, and efficiency. Notably, the Supermicro H14 generation of GPU optimized solutions featuring dual AMD EPYC™ 9005 CPUs along with the AMD Instinct MI350 series GPUs have been designed for companies that focus on maximum performance at scale, while, at the same time, reducing total cost of ownership for AI-driven data centers.

Super Micro Computer, Inc. (NASDAQ:SMCI) is a total IT solution provider for AI, Cloud, Storage, and 5G/Edge.

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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