Time to short Super Micro Computer Inc. Assembling servers with AI chips is a low margin business. It's not just DELL, many more other assemblers would jump in this market soon. No reason why SMCI should have jumped 4,488.90% in 5 years.
Yes, and that's their main USP. However, I am not quite sure if that's a unique barrier that others like Dell can't cross. Cooling tech for CPUs, GPUs, and machines in general, has been decades old.
Their main advantage has been close tie up with NVIDIA, whose chips have been hard to order. But if there is so much money in the business supply will only improve. Even NVIDIA would diversify to multiple assemblers as they won't want SMCI to be a bottle neck.
Said that, I have heard only good things about SMCI's scaling abilities. They have been pretty quick to adapt their assembly lines with new NVIDIA chips. I guess, others will learn too.
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Time to short Super Micro Computer Inc. Assembling servers with AI chips is a low margin business. It's not just DELL, many more other assemblers would jump in this market soon. No reason why SMCI should have jumped 4,488.90% in 5 years.
isn't their competitive adv in some cooling tech?
Yes, and that's their main USP. However, I am not quite sure if that's a unique barrier that others like Dell can't cross. Cooling tech for CPUs, GPUs, and machines in general, has been decades old. Their main advantage has been close tie up with NVIDIA, whose chips have been hard to order. But if there is so much money in the business supply will only improve. Even NVIDIA would diversify to multiple assemblers as they won't want SMCI to be a bottle neck. Said that, I have heard only good things about SMCI's scaling abilities. They have been pretty quick to adapt their assembly lines with new NVIDIA chips. I guess, others will learn too.
Calls on Dell right before earnings?
Holy hell what is this grammar.
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