| | | Hello, great questions!
I guess the answer is, I don't know, other than SMCI's growth trajectory is leaving the rest in the dust at the moment. I've been asking around these boards to help me build a case for a long term hold. It does concern me that there is so little conversation about it on SI so I could be totally wrong about the long term prospects.
Obviously, it is a picks and shovels play on the AI build out. Its not exactly under the radar, with 225% appreciation in the stock price so far this year it definitely has Wall Street's attention. It is now the #1 stock in the R2K by weight. With all of this you'd think we'd be hearing about it every day on CNBC, but we're not. I like that it's not overhyped.
I think the R2K is entering a bull cycle, which will be another fair wind for SMCI.
I think even after their huge run this year SMCI is considered undervalued. The trailing PE ratio is 23.99 and the forward PE ratio is 13.66. PEG ratio is 0.76. Market cap is $15 billion, float only 40 million.
They are bringing a new factory online in 2024 in Malaysia which will double its output capacity. Double its growth, double + its share price??
The data center server market size is estimated to grow by USD 115 billion from 2022 to 2027 at a CAGR of 15.27% according to Technavio, so there is probably room for growth in all those names you mentioned. HPE will probably be a big winner too, but as a mature company I don't know if they can match SMCI's potential explosive growth potential. Perhaps great to own both.
The top players in the sector are:
- DELL
- HP
- Inspur
- IBM
- Lenovo
- CISCO
- HUAWEI
- H3C
- SuperMicro
- Fujitsu
- Sugonf
I think the most important factor for me is SMCI's close relationship with Nvidia, which gives them an edge.
The big question is, is this a 1995 moment? If so, grab your picks and shovels! (-;
Good article making a bullish case:
nasdaq.com |
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