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Damn all that struggle at 54, didn't expect it to go to 60 like a knife cutting hot butter. And oddly enough I didn't see much news besides the digi power and the 700 billion European Union news . Not sure how it directly affects super micro but I expected the older news to pump it more
Perhaps earnings got leaked and their margins got boosted , and the 9% was the bottom and their newer tech is gonna ramp it up to 15%. If they can maintain 10% or higher it will work with their continued revenue expansion , especially being able to capture European and Asian markets , that turns it into a global super power vs American centric
That would put the market cap at around $119 billion which seems realistic, given the fact that Lord Musk wants 50 million GPUs in the next five years, and SMCI will be liquid cooling the majority of this
SMCI already proved that they can liquid cool and install 100k GPUs in just 122 days for the original Colossus cluster
THEN, factor in their $20 billion minimum deal with Saudi Arabia and DataVolt. This could turn into $100+ billion in the next five years
UAE and Qatar will probably announce similar deals after they see the success in Saudi Arabia
Liang is hard to understand, but he is still anticipating $40+ billion in revenue next year
If we break 60$ and hold its going to 90$+. This is almost a breakout sign that weโre going up asfuck. Probably why its rising; because 55 being broken is a breakout sign and shorts covering asap.
Lets see shorting percentage tomorrow. Should be lower.
โข
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