Risk Warning: SMCI
Fierce Regional Competition: In the downstream market of NVIDIA GPU servers, there are 11 competitors, mainly from the lower-cost Taiwan and Asian regions, which may exert pricing pressure on SMCI.
Short-term Benefits: SMCI is seen as a company that benefits in the short term, implying that it may not be able to sustain market advantages or profitability.
Customer Concentration Risk: SMCI's largest customer is Meta, indicating that the company has a high dependency on a single major customer, increasing business risk.
Weak Bargaining Power: Since SMCI's customers are primarily large enterprises, it may lack sufficient bargaining power in the negotiation process, making it difficult to raise product prices or improve contract terms.
Strong Performance of Competitors: Established companies like Dell Technologies have shown a strong market competitiveness in the AI server market with a sequential growth rate of 40% and annual sales of $3.2 billion, which may quickly catch up and erode SMCI's market share.
Supply and Demand Dynamics Changes: Although the supply and demand situation of NVIDIA GPUs has recently improved, if downstream demand cannot continue to grow, the growth potential of the entire market will be limited.
Uncertainty of Market Demand: Even with technological competition and market enthusiasm, if downstream market demand cannot keep up with the growth of supply, SMCI may struggle to achieve long-term growth.
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102514703 : As for short sellers, everything is a crisis. What you are talking about is a hardware crisis. Dell's market share is declining. Why don't you talk about SMCI's factory in Asia, why didn't you talk about gross profit costs, and why didn't you talk about the majority of SMCI customers in the US. Don't keep talking about half and half of the news; SMCI is coming to Southeast Asia to seize the market
6554 : today will be over $ 860
Ava Quinn OP 102514703 : What we are discussing here is the industry demand and competitive landscape, not a single issue.
102514703 Ava Quinn OP : Yes, obviously there is more demand for servers in the US. Those Taiwanese and Asian servers don't have much impact. The question you are asking is still the gross profit issue. Are you watching Dell's growth but not seeing its market share declining. Are you simply looking for problems with short selling. Short-term benefits? Liquid servers have only just started, so you just finished?
Ysss SG : A bunch of companies are coming to Johor, Malaysia to build data centers, and there is a lot of demand. SMCI's new plant in Malaysia will be completed, and production capacity will double. Yahoo news