Jun. 10 at 9:17 AM
$SMCI Other players in the AI space have already grown like crazy. Valuation is high and investors wonder how much higher they can really fly. Which players have room to grow? Ding ding ding -
$SMCI .
$DELL (which I also own shares of) for example, is trading at a P/E ratio of around 30 today while
$SMCI is trading around 22. Guess which one is at a relative discount.
The cash is to for purchasing components to fulfill the massive amount of new orders they’ve gotten in the last few weeks -
$39 billion worth across 20+ distinct customers. That’s huge!
$SMCI was originally expecting 2026 revenue to be
$38.9 billion to
$40.4 billion. This news completely changes
$SMCI’s financial horizon. 🚀
Stock dilution is a bearish move unless the extra shares produce more value for the shareholders long term than the dilution reduces. The only reason that wouldn’t happen is if SMCI’s margins are further compressed, but as maybe you saw during the last earnings, margins are expanding.
