Jan. 8 at 8:05 PM
$SMCI The thesis here is pretty simple.
SMCI banked hard for scale, sacrificing margins.
That margin compression is clearly visible, but so is their immense revenue growth.
They have cleared
$DELL and
$HPE in terms of data center and have positioned themselves very well, with close ties to the largest hyperscalers.
The question is simple now.
If margins can re-expand back to 10% NI... stock will reprice properly to
$70+.
With the way SuperMicro is talked about in AI circles, all the way to Jensen himself, there is ample asymmetric upside in this name.
If margins don't completely recover and instead hover around 5-6%... you still have a company that is trading at an appropriate valuation for that at
$30.
Seems like low risk, very high reward from here.
