“Everyone's Bullish on SMCI Again — Here's the Catch”
SMCI faces structural headwinds from low gross margins (<11%), price competition, and capital structure (preferred stock/debt) that limit shareholder value creation.
And just to pin a name to this, we're talking about Super Micro Computer today. A few years ago, when we covered it in 2023 and 2024 we were critical of SMCI. We passed on it, and, well, the stock price tanked the second half of 2024, and never really meaningfully came back since then.