Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the 10 AI stocks to keep on your radar. On February 4, Barclays analyst Tim Long cut the price objective on Super Micro Computer (NASDAQ: SMCI ) to $38.00 (down from $43.00) while maintaining an “Equal-Weight” rating.

Speaking on SMCI’s earnings report, Barclays noted how December quarter results beat expectations on both revenue and earnings. SMCI reported revenue of $12.7 billion, representing a 153% quarter-on-quarter increase and also beating Barclays’ estimate by more than $2 billion.

However, gross margin came in at 6.4%, slightly below the analyst estimate of 6.5%. Management forecast fiscal third-quarter revenue to be at least $12.3 billion and raised its full-year 2026 revenue guidance to at least $40 billion, in line with analysts’ expectations for revenue growth of 66% this fiscal year.

Gross margin is expected to improve by 30 basis points quarter-over-quarter next quarter, although it still remains below 7%. The company added that Data Center Building Block Solutions (DCBBS) is likely to increase the profit mix.

According to the company, SMCI’s fiscal guidance for 2026 points to a sequential slowdown in the fourth quarter, but it considers this conservatism. The momentum is expected to continue through the second half of the year.

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Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions for data centers, cloud computing, artificial intelligence and edge computing worldwide.

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

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Disclosure: no. This article is originally published in Monkey Insider.