Jul. 17 at 10:55 AM
$SMCI $NVDA $DELL Do you really want nvidia to allocate its resources to creating racks, because companies like SMCI are being punished for being low margin.
Think about it, if SMCI can do the low margin work and be rewarded for that, then Nvidia can focus on pumping out higher margin chips.
If SMCI does not have the capital to expand at an equal pace then companies Nvidia will need to allocate resources to that lower margin business, thus diluting their margins.
If your bullish on Nvidia then beware of the consequences of trying to drown out its synergistic partners.
