Key insights
- The article suggests Super Micro Computer (SMCI) is undervalued compared to Nvidia (NVDA) despite its critical role in the AI server supply chain. The author highlights SMCI's strong revenue growth and reasonable valuation (20x earnings) relative to other AI-focused companies. Increased spending on AI infrastructure by companies like NBIS is expected to drive demand for SMCI's servers, positioning it as a potential beneficiary of the ongoing AI boom, despite past accounting concerns.
Anyone else think SMCI is flying under the radar?
Everyone’s obsessed with NVDA, but all those GPUs still need to go somewhere. SMCI is one of the biggest partners turning them into actual AI servers and racks.
Then you look at companies like NBIS throwing billions into AI infrastructure and it just reinforces the point that the spending isn’t slowing. More GPUs means more servers. More servers means more demand for companies like SMCI.
What’s weird to me is people are willing to pay massive multiples for AI names, but SMCI is sitting here growing revenue like crazy at ~20x earnings.
Feels like the market still hasn’t forgiven the accounting drama, but if NVDA keeps selling and companies like NBIS keep spending, I don’t see how SMCI doesn’t benefit.
Maybe I’m missing something, but I genuinely don’t understand why more people aren’t talking about this.