Posted by DigiNomad on 6th of Aug 2024 at 05:23 pm
The problem I see with these companies lofty valuations is not
that they won't be great companies going forward. It's just that
this quarter has been an oh shit, look at that CAPEX number quarter
across the board so far. These guys are on the receiving end of
those oh shit CAPEX numbers (in a good way) but the reaction by the
market will likely force CAPEX down except for the few who have a
reasonable path to monetizing the spend. The quickest way to
monetize AI is to use it to replace humans and you can see how that
cycle plays out in the medium term. We're in a tricky spot.
To summarize - I can see why the market might call BS on
Charlie's forecasts.
SMCI burns cash, and has crappy margins. that's why the stock's
getting faded. Still, the upward revenue guidance remains a
positive for AI in general. Q&A starting now.
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Steve last mentioned that saying
SMCI +111 Authorized 10 for 1 split
Posted by te22 on 6th of Aug 2024 at 05:19 pm
Steve last mentioned that saying in 2020, I believe.
The problem I see with
Posted by DigiNomad on 6th of Aug 2024 at 05:23 pm
The problem I see with these companies lofty valuations is not that they won't be great companies going forward. It's just that this quarter has been an oh shit, look at that CAPEX number quarter across the board so far. These guys are on the receiving end of those oh shit CAPEX numbers (in a good way) but the reaction by the market will likely force CAPEX down except for the few who have a reasonable path to monetizing the spend. The quickest way to monetize AI is to use it to replace humans and you can see how that cycle plays out in the medium term. We're in a tricky spot.
To summarize - I can see why the market might call BS on Charlie's forecasts.
SMCI burns cash, and has
Posted by te22 on 6th of Aug 2024 at 05:27 pm
SMCI burns cash, and has crappy margins. that's why the stock's getting faded. Still, the upward revenue guidance remains a positive for AI in general. Q&A starting now.