Super Micro Computer, Inc. - SMCI - Share chat

This company makes hardware for the tech industry. Its products include motherboards, GPU systems and networking devices.

This stock has more than tripled YTD, it’s insane. It is now my second largest holding after Apple.

I went long on them with a speculative position shortly after a 2018 Bloomberg article tanked their share price without evidence.

https://www.bloomberg.com/news/features/2018-10-04/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-companies

Bloomberg actually doubled down on their spy chips story, without ever producing one of these spy chips in 2021.

I sold about half my holdings last year after thinking 20x was enough, but apparently not. The thinking is that everyone wants to design their own AI racks, and Supermicro are the ones to make it happen. I guess their ‘moat’ is less so than the chip companies, but it has generally been cheaper on a PE basis, but maybe not in the future.

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Whoever bought this at yesterday’s all-time high is having a tough time, with the stock falling almost 18% just today

I exited my position at ~$900. I’m not entirely convinced of the AI golden age scenario, and as I said above, their moat is harder to defend than Nvidia’s.

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Out at 800 for me. But ready to pounce back in if we get any more pull back tomorrow
Is there any other company building racks to house all the AI chips ? :saluting_face:

Got in too late on this one. Whoever got in at the slow and level start did well.

Where’s the best to read about stocks. Just starting out?

I think NVDA has a moat, while SMCI relies heavily on a few customers, which could impact their business if some of them decide to change vendors.


I missed the $700 I was looking at getting back in at :face_with_raised_eyebrow:

https://www.stocktitan.net/news/SMCI/supermicro-announces-pricing-of-private-offering-of-1-5-billion-of-bne71m9r6yxi.html

Convertible @$1340 …

Still plenty of upside then