Is this gross margin repair an inflection point marking a return to grace or is it just a beautiful flash in a pan?
Over the past year, Super Micro was growing revenue well but its profit margins were collapsing. The more server racks they sold, the less profitable they become.
The company was buying expensive components & rushing liquid cooling tech to keep up with NVIDIA's Blackwell demands.
Margins dropped to 11.2% leaving investors wondering if SMCI was just a low margin assembly line.
In Q1, non GAAP gross margin was back to 13.4%, beating Wall Street's 12.1% estimate.
As supply chain chokepoints ease & production of liquid cooling blocks reaches scale, things are looking better for SMCI.
Exciting times are ahead for SMCI.
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- LenaAnneยท18:0313.4% is the whole story for me. If they can hold that while liquid cooling scales, this rerate probably has legsLikeReport
- ไธๆญป้ธ.ยท16:55thanks for sharingLikeReport