SMCI: Attractive Valuation After Overreaction in AI Data Center Demand

2 months ago

"Number four is Super Micro computer SMCI. Super Micro computer builds the powerful servers and hardware that run AI and cloud systems. Instead of just using fans and air, SMCI designed systems where liquid flows through special pipes to pull heat away from powerful chips like Nvidia's H100s, allowing data centers to run faster and use less energy. Despite a recent dip following earnings that weren't bad at all, the order book remains very strong with a backlog jump to $13 billion and a raised full-year revenue outlook to $36 billion. This overreaction makes SMCI a great deal poised to benefit from explosive AI server demand."

The host emphasizes SMCI's innovative liquid cooling technology and strong backlog fueled by Nvidia AI chip orders. Despite a brief dip due to earnings timing, the elevated guidance and order book signal a robust long-term play in the expanding AI data center market.

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