16 Trending AI Stocks on Latest Analyst Ratings and News

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

Number of Hedge Fund Holders: 47 

Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high performance server and storage solutions based on modular and open architecture. The company has become a market leader in the Direct Liquid Cooling (DLC) solutions space. These DLC solutions are used by tech giants and chip firms to manage heat flow in high-end chips that get hot while running complex AI computations. The company claims it has captured 70% to 80% of the DLC market and aims to scale these solutions quickly as AI capex touches record highs. Concerns around production delays for Blackwell, the latest NVIDIA chip, could hamper DLC orders as well in the short term, according to market experts.

This bearish view on Super Micro Computer, Inc. (NASDAQ:SMCI) is endorsed by Wall Street. Bank of America analyst Ruplu Bhattacharya recently downgraded the stock to Neutral from Buy with a price target of $700, down from $1,090. The analyst noted that the next several quarters remained challenging for the company in terms of margins, largely due to a competitive pricing environment, delayed shipment of Blackwell GPU systems that require higher margin liquid cooled racks, and on-going issues with component availability.