Jun. 9 at 5:20 PM
$SMCI
Big players are cashing out to prepare for the potential SpaceX IPO. At the same time, this rotation may also reflect capital flowing out of legacy hardware names like
$DELL and
$HPE and could go all in Super Micro Computer (SMCI), a company that is fully focused on native AI infrastructure.
SMCI showcased an impressive product portfolio at Computex alongside Nvidia, AMD, Intel, and ARM. Its modular rack architecture offers easier maintenance and scalability, while its liquid cooling technology (featuring Supermicro's patented next-generation coolant appears to provide a significant competitive advantage).
The company has consistently delivered outstanding earnings growth, with profitability continuing to improve. If DCBBS adoption expands as expected, operating margins could potentially approach 20%.
Despite its leadership position in AI servers, SMCI's market cap is only around
$25B. Its forward P/E and trailing P/E remain more attractive than many competitors.
