Super Micro Computer: Margin Expansion Potential Ahead

(9min)

Summary

  • Since my last writing, the latest earnings projections on SMCI imply a margin expansion in the upcoming quarterly report.
  • I do see various catalysts that could support such an expansion, with NVIDIA’s Blackwell chip availability as a leading one.
  • There are still lingering concerns (such as delayed reporting).
  • However, I see a favorable return/risk curve here due to the margin potential, low P/E ratio, and clarity provided by its internal auditing thus far.
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Wooden blocks with "MARGIN" text of concept and coins.

Seiya Tabuchi

SMCI stock: previous thesis and new developments

My last article on Super Micro Computer, Inc. (NASDAQ:SMCI) pitched it as a swing trade idea. That article was published on 12-10-2024 by Seeking Alpha and was

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This article was written by

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Envision Research, aka Lucas Ma, has over 15+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

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