Aug. 31 at 12:53 AM
$SMCI bears keep acting like Supermicro is the ONLY AI infrastructure company facing regulatory scrutiny. It’s not.
$NVDA — antitrust scrutiny
$MSFT — FTC scrutiny over AI/cloud practices
$AMZN / AWS — EU cloud competition scrutiny
$GOOGL — multiple regulatory investigations
Now look at what SMCI is actually producing:
🔥 FY2026 revenue:
$39.1 BILLION vs.
$22.0B last year
🔥 Nearly 78% YoY revenue growth
🔥 Q4 non-GAAP gross margin: 17.6%
🔥 Massive AI infrastructure demand
🔥 Record order/backlog momentum
🔥 Deep exposure to NVIDIA, AMD and the entire AI buildout
And remember the independent Special Committee investigation: it reported no evidence of misconduct or fraud by management or the Board and did not substantiate the major allegations being thrown around.
Now add VALUATION.
SMCI continues to trade at a substantial discount to many companies benefiting from the exact same AI infrastructure boom.
Give a company producing this kind of growth even a 25x earnings valuation and the implied value can approach roughly
$86/share based on the earnings assumptions we’ve discussed.
That’s the disconnect. 👀
The market is pricing SMCI like the AI boom is passing it by while the company is generating nearly
$40 BILLION in annual revenue and growing at an extraordinary rate…
Investigations are NOT convictions. Regulatory scrutiny isn’t unique to SMCI.
Eventually:
REVENUE + MARGINS + BACKLOG + EARNINGS + AI DEMAND = VALUATION
The numbers will have the final word.💎
