Investment Q&A

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!

Q: Sell or hold
pdfs,inmd,smci,yumc ,N ,And ET-T

Q: Hi there, may I please have your thoughts on PEY results?

What companies are you finding interesting right now, after their 2Q results?

Any companies unjustifiably being punished, with their shares being sold off currently, that you believe is not justified and will have a good bounce within the next six months or so? ie; seems like WELL results are being misunderstood...hmm

Thanks!

Q: Hello Team,

Looking to purchase a couple stocks in my US dollar trading account, are you able to rank the above stocks from 1 to 12. Don't worry about size, industry or risk, will be holding for 3 years. Thanks so much!

Q: I’ve heard that data centre spending between now and 2030 will fall into three buckets: CPUs, Ai accelerators, and infrastructure, where CPUs are the slowest growing segment. Do you agree with that framework, and if so, could you briefly explain the difference between these three areas and recommend the best companies in each? Thank you.

Q: Hi 5i Team,

I currently own Super Micro and Nextracker and wondering if you would prefer a switch into TMDX, ASPN, CLBT and PLTR? How would you rank the 6 for a hold over the next 3-5 years?

Thanks as always,
Jon

Q: I am overweight both of these names. I am hoping for a recovery pop at which time I will seek to sell down a bit and spread the money out. Can you please give me a few other names that you might suggest for growth at this time? I sold booking holdings at a loss so please exclude that name. I am too afraid to buy back smci due to its wild volatility. I was consider coherent, Motorola, and Monolithic Power but am open to other suggestions. Thank you.

Jason

Q: Can you please provide your opinion about starting a position in SMCI?