Feb. 4 at 9:39 AM
$SMCI
Why I think
$SMCI goes higher… like way higher:⬆️⬆️⬆️
• DCBBS is the game changer – This isn’t just selling servers anymore. Liquid cooling systems = higher-value infrastructure, and mgmt is talking 20%+ margins here. As that mix grows, overall margins get pulled up with it.
• Customer mix is improving – They used to lean heavily on one big customer (~63% of rev). Now they’re expanding into enterprise + gov where pricing power is better and revenue is more diversified.
• Efficiency phase kicking in – They already built the capacity. As production matures, those expensive rush/expedite costs fade and more of the revenue drops to profit.
Reality check: You don’t guide
$40B+ revenue (basically ~100% growth) if business is struggling. What we’re seeing is the messy part of scaling fast. Once the buildout stabilizes, margins follow.
This looks more like growing pains than peak cycle.
