$SUPER MICRO COMPUTER INC(SMCI)$ Bears better be paying attention this week.
Dell reports earnings Tuesday, HPE reports Wednesday.
Look at the forward P/E multiples here: SMCI around 8.6X, HPE around 13.4X, Dell around 24.6X.
SMCI is one of the biggest pure-play beneficiaries of the AI server and GPU infrastructure buildout, and it is trading at roughly one-third of Dell's forward multiple. That valuation gap is getting ridiculous.
If Dell and HPE come out this week talking about accelerating AI server demand, hyperscaler spending, GPU infrastructure, and continued data-center growth, Wall Street gets another confirmation that the AI infrastructure boom is far from over. SMCI has enormous exposure to exactly that spending.
SMCI closed around $37 Friday. A move into the $44–$46 range would still leave the company nowhere near Dell's valuation multiple.
I am looking for the market to finally start closing this valuation gap. Mid-$40s this week is absolutely on the table if Dell and HPE deliver strong AI commentary.
The bears have been pricing SMCI like AI growth disappeared. This week Dell and HPE may remind them just how wrong that thesis is.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
