To be completely honest, I haven’t suggested here or on any forum that one should invest in SMCI at this point in time. What I have said is that I failed to bail out at a more opportune time and as a current holder of a position in the company I feel I have more to lose now by selling.
All in all, I think all the sturm und dram is overblown. I also think a lot of folks miss the point when they assert that SMCI does not have competitive advantage based on their technology because it’s not that hard to reproduce.
Yeah, that’s true, their competitive advantage resides in the fact that their stock product catalog has over 250 servers designed to serve the unique requirements of the numerous different verticals they serve. A telecom and a CSP have different needs, as does an AI farm, a high performance implementation and so forth. And further, they’ll sit down with customer engineers and design servers to exactly address their specific use case. In addition, they have the fastest time to delivery, the earliest time to online and the lowest total cost of ownership. These things are not so easy to replicate.
