Jun. 11 at 12:00 PM
$SMCI My observation is that stock price were intentionally pushed high before the offering. Or it was an excellent timing.
Clearly the market was pricing the company well above the current fair value, accompanied by
$DELL and
$HPE recent earnings, which indicate a strong demand for AI infrastucture.
Imagine, if backlog is resolved turned into revenue. Expect a significant revenue increase in following quarters. DCBBS systems have high margin, because no competitor offers a similar solution. Even DCBBS generate a portion of
$SMCI revenue, this will change rapidly.
Margin issue is temporary. Demand is real.