Super Micro Computer, Inc. (NASDAQ: SMCI) is considered one of the Best AI Stocks to Buy under $50. Its recent fiscal first quarter results for 2026 fell short of expectations, with an adjusted EPS of $0.35 and revenue of $5.02 billion. Goldman Sachs noted SMCI missed Q1 earnings guidance due to delayed customer deliveries.

Despite its large manufacturing capacity and ability to ship liquid-cooled racks, SMCI faces long-term profitability concerns in the competitive AI server market. Bank of America has an Underperform rating on the stock with a price target of $34, citing tighter margins in bigger deals. The AI server landscape is becoming increasingly competitive.

Super Micro Computer, Inc. designs and manufactures high-performance server and storage solutions globally. While the company has investment potential, some believe other AI stocks offer greater upside potential and less downside risk. For those interested in undervalued AI stocks with potential benefits from tariffs and onshoring trends, consider the best short-term AI stock.

Read more at Yahoo Finance: Analysts Grow More Careful on Super Micro Computer (SMCI) Despite AI Demand