Super Micro Computer (NASDAQ:SMCI) will join the Nasdaq-100 Index (NDX) before the markets open on Monday, July 22, replacing the pharmacy chain Walgreens Boots Alliance (NASDAQ:WBA), Nasdaq (NDAQ) announced.
This is another bullish move for the Stock and company. With earnings out soon, and maybe another strong pre earnings announcement coming in the next few days or so, this move into the Nasdaq 100 continues to strengthen the multiple reasons to continue to hold SMCI. It is already the best performing stock of 2024, beating even NVDA, and I still think there is a long way for this company to run. I posted the other week referencing Charles Liang’s expectation that he believes that very soon 30% of racks sold will be DLC (direct liquid cooling), up from only 1% currently. Another solid reason to hold Supermicro. And then of course there is Sovereign AI…
Long SMCI now at 33% of my portfolio.
Best,
Jonathan
49 Likes
Odd SMCI has basically tanked since this announcement.
Today we hear maybe why?
"Super Micro Computer is in talks with financial institutions for a potential senior revolving credit facility to repay its $500M term loan and ABL agreements. The term loan, set to mature in January 2025, will support ongoing working capital and corporate purposes. The revolving credit facility is expected in Q1 of FY 2025. "
I actually am using this dip to move 20% of my beloved CRWD into SMCI, which I last sold at $239 a share.
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Yes, its true the stock has stalled, and retraced a bit of late, but its currently only down 1.5% or so after todays announcement about the loan facility.
I have no problem with them taking on debt to fund growth, especially at the rate they’re growing.
And of course its not long until earnings now when we will discover just how much they’ve been growing.
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I read that they are taking out a revolver in order to pay off some outstanding loans. In other words this loan will not be used to fund growth, but it should reduce interest payments.
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