Investment Q&A

Q: Hello Peter,

Would you invest in SMCI at this point in time? I bailed out when the news of the investigation came out. At the same time, the company insists their shipments are going great guns and they have a superior product.
Regards
Rajiv

Q: Hi,

With the stellar performance of NVDA over the last two years, what inning do you think they are in for future gains and what's the risk/reward setup? I'm up over 500% and NVDA is one of my top positions. I hear the AI revolution is just get started and its only 7pm and this party ends at 3am. As the AI revolution continues here, who are the top 4-5 companies that are next to benefit where they are trading at a fair valuation currently? Would it now be the software companies and enterprises? I can either continue to hold NVDA or thinking of occasionally trimming to buy some smaller companies that have more torque, such as PLTR (expensive) or CLS. Any other suggestions? Thank you!

Currently holding SHOP, CSU, CRWD, TOI, NVDA, LMN, INTU, VRT, SMCI, CLBT in tech.

Q: I noticed that SMCI has a P/E ratio of 20.23, which is quite appealing for a tech stock. Do you believe the business will continue to perform well in the future? Considering today’s significant drop in the stock price, would you see it as a buying opportunity? Thank you.

Q: Time to sell SMCI?

Q: Hello Team,

Are you able to rank the 12 companies listed from 1 to 12 in terms of capital appreciation over the next 2-3 years. I currently hold all of the mentioned stocks but do have some cash to deploy. Thanks.

Q: Hi,

Why is this "Radio silence" on/from SMCI? When are they going to release their revised numbers? No news on their response to class action suits either. Next earnings report is on the 29th October. Is that when the proverbial muck hits the fan? Or do you think things might improve after their 10 to 1 split takes place on October 1st?

I see that this is not their first time with this type regulator related troubles. They seem to have survived the storms before. Will they survive them again?

The price action indicates a little bit of steadying around 400$. (+/-).
Can you gaze into your crystal ball and a. give us a floor and a ceiling, say with December 2024 in mind, b. tell us when it will hit at least 700 again? (Pre split price.)

Many thanks.

Q: I am presently down 61% on SMCI . What do you think of this company and is it a sell or hold ? I also hold QCOM, but not under on this one. Any thoughts on this one ?
LRCX , I'm down 17%, the chart looks good on it .Sell or hold ? If I were to sell any of them, please give me 5 choices of stocks in the same categories. Thanks guys.

Q: As a senior, I found the AI revolution quite confusing with so many companies involved. I wanted to understand their roles better before investing more. The explanations I found on Google were too technical and didn’t give me a clear picture. Then I discovered Bing and Meta AI, which were very helpful. I asked them to explain each company’s work using everyday analogies. Meta AI used the construction of a vehicle to illustrate each company’s role, and I found it much easier to understand. It was so interesting that I wanted to share it. Thanks!

Here's an analogy using the construction of a vehicle to explain the work of the above AI companies:

1. _NVDA (NVIDIA)_: Engine manufacturer (GPUs) - Provides the powerful engine (compute power) that drives the vehicle (AI system).

2. _AVGO (Broadcom)_: Electrical system supplier - Ensures seamless connectivity and communication between various vehicle components (devices and systems).

3. _SMCI (Super Micro)_: Chassis manufacturer - Builds the strong foundation (servers) that supports the vehicle's (AI system's) components.

4. _ARM (Arm Holdings)_: Vehicle architect - Designs the efficient and powerful blueprint (chip architectures) for the vehicle's engine and other components.

5. _PLTR (Palantir)_: Data analyst - Helps the vehicle's (organization's) mechanics understand and optimize performance by analyzing complex data.

6. _ASML (ASML Holding)_: Precision toolmaker - Creates ultra-accurate machinery (lithography machines) that crafts tiny, precise components (chips) for the vehicle.

7. _TSMC (Taiwan Semiconductor)_: Chip manufacturer - Builds the intricate silicon components (chips) that power various vehicle systems.

8. _VRT (Vertiv)_: Power and cooling specialist - Ensures the vehicle's (AI system's) engine and components receive reliable power and cooling, preventing overheating and damage.

In this analogy, each company plays a vital role in constructing and optimizing the vehicle (AI system), from designing and building components to ensuring efficient performance and maintenance

Q: For each pair, which would you choose today? VRT vs. SMCI, DCBO vs. TCS, NXT vs. BMI. Thank you!

Q: I recently purchased a small amount of SMCI when it dropped a few weeks ago. It seems the stock isn’t very popular right now. I’m wondering if I should hold onto it or sell it. Is it a good investment? My small investment in SMCI is starting to show some gains. I’m thinking about investing more if the long-term outlook is promising. I’d appreciate your thoughts. Thanks in advance!

Q: Follow Up from my recent question.

A couple questions weren't answered, but can the following one be addressed?

4. AMD. Is it worth holding the 2nd fiddle? Would it be better used in something in 1st in a different space? like AVGO or QCOM?

With your answer to SMCI from my previous question, do you have an idea based on multiples, etc that you could see an achievable price target at for 12 months?

And Finally, the last couple weeks have been ROUGH. In the other answers I've seen you mention issues with the Election, Recession fears, and just general fear with earnings coming. Are we in for a rougher ride? I know that not being invested for the few key days in a period of time drastically reduces total returns over a period, but do you foresee one of those key days coming say, by the end of the year? Would it be prudent for an investor in times like these to say, go to say 25, 50, or 75% cash? Which?

I picked up PRL and ASPN after your response to mine and other questions, and am 10 and 20% down. Did I jump the gun? Worth going to a full position in the current turbulence? Or is it worth a steadier broad market etf or energy Utility until things calm down?

Q: So not long ago when it over a $1000 and being recommended still as a buy, today with it being under $400 is buying today like robbing the bank or does the knife continue to fall? Is 5i buying today?
Thanks Again

Q: Thanks for your answer of September 5th to my question on SCMI. You did not give me a guideline as to what you thought a good acceptable size would be. Currently it is 3%of my entire portfolio. Do you feel that is too large?

Also, to clarify, would you or would you not at this point sell OOM Covered calls on this positon, say 450 ,470 etc.

You felt due to the higher upside vs downside at this point you would hold the position.

Thanks in advance for your clarification



Sheldon

Q: Am I correct that it appears SMCI wants to delay, but not redo, its 10K Filing? It appears a 10K Filing is required by the SEC and is far more detailed than an annual report. A delay in filing suggests there is weakness in Senior Management which is a definite negative. I don't believe in coincidences so I think it likely the Hindenburg report, posted 1 day before SMCI announced the filing delay, have sniffed out something. According to SMCI there is a problem with "the design and operating effectiveness of its internal controls over financial reporting". A pretty general statement if ever I saw one! If they have been evading sanctions that could spell serious trouble. SMCI has a reputation in Silicone Valley as a "sweat shop" according to my son-in-law who once worked for them. Anyways I'm lightening my long position on the up days as I just don't want to sell into panics. Any comments you might have would be appreciated.
Regards,
Jim

Q: Good morning,

Can I please get your thoughts regarding the likelihood of a strong bounce for SMCI after the dust settles from the Hindenburg report and delayed filing brouhaha? Is it likely that they still go ahead with the 10:1 planned stock split? Thanks. Brad

Q: SMCI 8/28 @10:30 down another 25% today. Hagens Berman are advising investors who are suffering substantial losses to submit your claims. Could you explain what the proper procedure is to do this or do you have other recommendations? Thank you so much.

Q: Can you discuss the situation with SMCI, the short report and what the best strategy is going forward.

thanks, M

Q: Can you provide a review of the short report on SMCI? Thank-you.

Q: Do you know why SMCI dropped over 8% today?

Q: Both SMCI and VRT have dropped significantly over the past 3 months. Do you see that one has stronger turn around potential than the other, and and if you were buying, which would you buy, or would you split the position between both. Thanks!