Feb. 3 at 4:24 AM
$SMCI People keep getting hung up on SMCI margins and completely missing the point.
History says the integrator wins.
$DELL didn’t make Intel CPUs or Windows. Amazon didn’t make the products it sold.
$TM didn’t build every component. IKEA didn’t own forests.
$SBUX didn’t grow coffee beans.
In all cases, the most expensive, high-margin parts were owned by others. These companies only made money on their slice — assembly, logistics, systems, speed. Margins were thin. Volume was huge. Outcome? Global dominance.
SMCI is the same setup.
Nvidia owns the high-margin silicon. SMCI makes money on rack-scale integration, power, cooling, customization, and most importantly: speed to deployment.
AI customers don’t care about SMCI’s margin %, they care about time to compute. Whoever turns chips into working AI factories the fastest wins.
Same playbook. Different decade.
