12 AI News and Analyst Ratings You Probably Missed

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8. Super Micro Computer, Inc. (NASDAQ:SMCI)

Number of Hedge Fund Holders: 45

Super Micro Computer, Inc. (NASDAQ:SMCI) develops and sells high-performance server and storage solutions for enterprise, cloud, AI, 5G, and edge computing markets.

On March 24, Goldman Sachs downgraded Super Micro (NASDAQ:SMCI) from Buy to Sell and reduced its price target from $40 to $32, indicating increased competition in AI servers and margin pressures. The firm sees risks in valuation, with the stock trading at 16x projected fiscal 2025 earnings, and expects its premium over peers to narrow due to limited product differentiation. Rising competition, the Blackwell product transition, and pressure from major customers and suppliers could further impact gross margins through 2027. Analyst Michael Ng also noted that SMCI’s market leadership in AI servers may weaken as rivals ramp up R&D investments.

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