Jul. 27 at 5:38 AM
$SMCI $DELL $NVDA $HPE $AMD Lets do a similar pricing for DELL that I do for SMCI, of course I wont include DELL's debt because the market just ignores that. But oh well lets see.
DELL FY27 Ill estimate 220b, theyll go up for sure thats a given, but margins will likely suffer as they are leaning more into racks, and competing with SMCI's margins is hard for them. So lets say 17% margins, the top end of SMCI's estimates for theirs.
At 220b 17% margins equate to
$37B gross profit, thats a nice 50% yoy pretty decent their opex eats into net, SMCI's is leaner. Lets go for around 9 to 10% its been increasing lately while SMCI's has been decreasing.
So at 9% opex and 17% gross thats around 8% net. so on
$220B at 8% thats around
$17.6B net income. thats a nice triple there, seems good.
On sharecount of 325m thats an EPS of
$54 per share at an EPS of 15x their set for a share price of around
$812.
Thats fine I was never arguing DELL was overvalued, just the market punishing SMCI too much. SMCI next
