Price matters, and the question is whether SMCI is still a buy in this context

Nvidia Blackwell AI Server Orders for SMCI
Supermicro Computer may be viewed in some ways as an AI computing underdog. However, after its run earlier this year, it’s clear investors are picking up on the upside this stock has relative to the AI tailwinds we’re seeing.
Super Micro has received substantial orders for server racks using NVIDIA’s Blackwell AI GPUs. The firm gained attention during the AI hype, with its stock rising 182% year-over-year as the company established key relations with Nvidia.
Specializing in high-performance systems for AI, SMCI experienced a significant surge in orders in recent quarters.
Super Micro is expanding its business with Nvidia’s advanced Blackwell AI GPU architecture. The firm received a significant order for Blackwell AI server racks, and is set to ship 10,000 units, accounting for 25% of Nvidia’s supply.
Key systems included in this sale are the Nvidia HGX B100 and B200 8-GPU systems, 5U/4U PCIe GPU systems with up to 10 GPUs, SuperBlade with up to 20 B100 GPUs, 2U Hyper with up to three B100 GPUs, and 2U x86 MGX systems with up to four B100 GPUs.

The Problem with SMCI
Excessive debt can lead to lenders taking control or forcing the company to issue shares at low prices, diluting shareholders. Therefore, evaluating a company’s debt alongside its cash holdings is crucial.
Super Micro’s debt increased to $1.86 billion from $187.2 million last year. However, the company holds $2.12 billion in cash, reflecting a net cash position of $252 million.
Super Micro Computer’s balance indicates a strong financial position and ability to manage debt.