Posted 3/22/2024, 10:40:00 AM
Super Micro Tied to Nvidia Despite Differences, Faces Margin and Competition Risks as Dell Seeks Services Growth
- Super Micro's stock price is closely tied to Nvidia's, but the two companies are quite different
- Super Micro's profit margins are declining even as revenue grows rapidly
- Dell's infrastructure solutions revenue is declining, but its valuation is more reasonable than Super Micro's
- Super Micro relies heavily on Nvidia, so competition in accelerated computing could hurt it
- Dell could see growth in integrated IT services long-term, and its stock trades at a discount compared to Super Micro