Brendan Rose
Long/short equity, CFA, micro-cap, small-cap

Super Micro Computer: A Founder/CEO Culture-Driven Success Story

Aberrations are worth exploring. Super Micro Computer (NASDAQ:SMCI) is an aberration. What else to call a company that's profited every year since its 1993 founding, and outgrown peers organically by sustained ~10% rates, despite never possessing more than 3% market share in a brutally competitive industry? Let's explore.

But first, some context. SMCI smashed estimates last quarter, as sales spiked 22% y/y and 15% sequentially, a big divergence from the mid-single digit industry trend. Quarterly earnings almost doubled y/y to $0.35. The stock spiked several dollars, and analysts upgraded their estimates across the forward spectrum. Growth was geographically broad-based, but fastest in Asia, which rose to 23% of sales from 17% y/y, resulting from SMCI's commitment to...

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