Super Micro Computer Aims for Growth in AI Server Market, But Achieving Microsoft-Level Valuation Seen as Unrealistic
-
Super Micro Computer (SMCI) makes high-performance AI servers powered by Nvidia GPUs. Its revenue grew at 17% CAGR from 2007-2020.
-
SMCI aims to increase its share of the dedicated AI server market from 10% to 17% in 3 years as the market expands 150%.
-
For SMCI to reach Microsoft's $3 trillion valuation by 2050, it would need to grow revenue at 18% CAGR to $1 trillion.
-
Achieving that level of growth for decades could be challenging due to competition and market uncertainty.
-
While SMCI has growth potential, comparing it to Microsoft is unrealistic given Microsoft's software dominance and diversification.