CryptoCurrency
Billionaire Jeff Yass Just Increased His Position In This Dirt Cheap Artificial Intelligence (AI) Stock By 148%. Here Are 3 Things Smart Investors Should Know.
Every quarter, investment firms that manage more than $100 million file a form 13F with the Securities and Exchange Commission (SEC). I find the 13F to be a valuable tool because it breaks down in detail which stocks institutional investors are buying and selling, and it can be interesting to try and identify patterns among Wall Street’s biggest money managers.
One investor that I enjoy following is Jeff Yass, the co-founder of Susquehanna International Group (SIG). During the second quarter, SIG purchased roughly 5 million shares of artificial intelligence (AI) stock Super Micro Computer (NASDAQ: SMCI) — increasing its position in the company (also known as Supermicro) by 148%.
Below, I’m going to break down the mechanics of Supermicro’s place in the AI realm and address some important topics that should be considered when investing in the company.
Supermicro often comes up when semiconductor companies such as Nvidia or Advanced Micro Devices are mentioned. For this reason, many investors perceive Supermicro as another chip stock — but in reality, this isn’t exactly right.
Supermicro is an IT infrastructure business that specializes in designing storage architecture for Nvidia’s and AMD’s graphics processing units (GPU). So, while demand in the chip industry has direct influences on Supermicro’s operation, the company itself is not a true semiconductor stock.
Although Supermicro has undoubtedly benefited from AI tailwinds, the financial profile below paints a pretty sobering reality.
Namely, Supermicro’s gross profit margin is trending in the wrong direction. Despite consistent acceleration across the top line, Supermicro’s unit economics are pretty backward.
While management has said that these headwinds will be short-lived, the reality is that IT infrastructure is not a high-margin industry. This dynamic leads me to my next important topic: competition and the risk of commoditization.
While Supermicro has done a respectable job of fostering relationships with some of the world’s leading GPU producers, these relationships are by no means exclusive.
Supermicro competes with plenty of other businesses that offer IT architecture solutions, including Dell Technologies, Hewlett Packard Enterprise, Lenovo, and Cisco. These companies are much larger and more diverse than Supermicro, making them formidable rivals.
Broadly speaking, when the same solution is offered by many players within the same industry, companies become forced to compete on price. So, even though Supermicro’s management has been forecasting increasing operating profit, I question how profitable the company will ever become as competition heats up.
As institutional interest in Bitcoin soars, the crypto community grapples with fundamental questions about custody and control.
Developing crypto regulations, along with a political shift toward cryptocurrencies, is a “very positive direction” for the industry, according to Changpeng Zhao.
With the US presidential elections nearing and no clear frontrunner, uncertainty looms over what effect the victor will have on the crypto sector.
It’s Bitcoin White Paper Day, but it’s also Halloween. Here are Cointelegraph’s six crypto mysteries to share around the campfire.
Bitget Wallet’s Telegram Mini App, Bitget Wallet Lite mini, has attracted more than six million users in just three days after its soft launch.
In just 16 years, Bitcoin has grown to become the world’s 10th largest asset and the best currency for “financial freedom,” according to Tether CEO, Paolo Ardoino.
-
Science & Environment2 months agoHow to unsnarl a tangle of threads, according to physics
-
Technology1 month agoIs sharing your smartphone PIN part of a healthy relationship?
-
Science & Environment2 months agoHyperelastic gel is one of the stretchiest materials known to science
-
Science & Environment2 months ago‘Running of the bulls’ festival crowds move like charged particles
-
Technology2 months agoWould-be reality TV contestants ‘not looking real’
-
Science & Environment1 month agoX-rays reveal half-billion-year-old insect ancestor
-
Science & Environment2 months agoMaxwell’s demon charges quantum batteries inside of a quantum computer
-
Money1 month agoWetherspoons issues update on closures – see the full list of five still at risk and 26 gone for good
-
Sport1 month agoAaron Ramsdale: Southampton goalkeeper left Arsenal for more game time
-
Science & Environment2 months agoSunlight-trapping device can generate temperatures over 1000°C
-
Science & Environment2 months agoPhysicists have worked out how to melt any material
-
Technology1 month agoGmail gets redesigned summary cards with more data & features
-
Football1 month agoRangers & Celtic ready for first SWPL derby showdown
-
MMA1 month ago‘Dirt decision’: Conor McGregor, pros react to Jose Aldo’s razor-thin loss at UFC 307
-
Technology1 month agoUkraine is using AI to manage the removal of Russian landmines
-
News1 month agoWoman who died of cancer ‘was misdiagnosed on phone call with GP’
-
Science & Environment2 months agoLaser helps turn an electron into a coil of mass and charge
-
Sport1 month agoBoxing: World champion Nick Ball set for Liverpool homecoming against Ronny Rios
-
Technology1 month agoEpic Games CEO Tim Sweeney renews blast at ‘gatekeeper’ platform owners
-
Business1 month ago
how UniCredit built its Commerzbank stake
-
Science & Environment2 months agoA new kind of experiment at the Large Hadron Collider could unravel quantum reality
-
Science & Environment2 months agoLiquid crystals could improve quantum communication devices
-
Technology1 month agoRussia is building ground-based kamikaze robots out of old hoverboards
-
News1 month ago‘Blacks for Trump’ and Pennsylvania progressives play for undecided voters
-
Technology1 month agoSamsung Passkeys will work with Samsung’s smart home devices
-
Science & Environment2 months agoQuantum ‘supersolid’ matter stirred using magnets
-
MMA1 month agoDana White’s Contender Series 74 recap, analysis, winner grades
-
Technology1 month agoMicrosoft just dropped Drasi, and it could change how we handle big data
-
News1 month agoNavigating the News Void: Opportunities for Revitalization
-
MMA1 month ago‘Uncrowned queen’ Kayla Harrison tastes blood, wants UFC title run
-
Science & Environment2 months agoWhy this is a golden age for life to thrive across the universe
-
Sport1 month ago2024 ICC Women’s T20 World Cup: Pakistan beat Sri Lanka
-
Entertainment1 month agoBruce Springsteen endorses Harris, calls Trump “most dangerous candidate for president in my lifetime”
-
MMA1 month agoPereira vs. Rountree prediction: Champ chases legend status
-
News1 month agoMassive blasts in Beirut after renewed Israeli air strikes
-
Technology1 month agoCheck, Remote, and Gusto discuss the future of work at Disrupt 2024
-
News1 month agoRwanda restricts funeral sizes following outbreak
-
TV1 month agoসারাদেশে দিনব্যাপী বৃষ্টির পূর্বাভাস; সমুদ্রবন্দরে ৩ নম্বর সংকেত | Weather Today | Jamuna TV
-
Technology1 month agoWhy Machines Learn: A clever primer makes sense of what makes AI possible
-
Science & Environment2 months agoQuantum forces used to automatically assemble tiny device
-
Technology1 month agoMicrophone made of atom-thick graphene could be used in smartphones
-
Business1 month ago
Top shale boss says US ‘unusually vulnerable’ to Middle East oil shock
-
Business1 month agoWater companies ‘failing to address customers’ concerns’
-
News1 month agoCornell is about to deport a student over Palestine activism
-
Business1 month agoWhen to tip and when not to tip
-
Sport1 month agoWXV1: Canada 21-8 Ireland – Hosts make it two wins from two
-
News1 month agoHull KR 10-8 Warrington Wolves – Robins reach first Super League Grand Final
-
MMA1 month agoKayla Harrison gets involved in nasty war of words with Julianna Pena and Ketlen Vieira
-
Science & Environment2 months agoITER: Is the world’s biggest fusion experiment dead after new delay to 2035?
-
News2 months ago▶️ Hamas in the West Bank: Rising Support and Deadly Attacks You Might Not Know About
-
Technology2 months agoMeta has a major opportunity to win the AI hardware race
-
Science & Environment2 months agoA slight curve helps rocks make the biggest splash
-
Science & Environment2 months agoNuclear fusion experiment overcomes two key operating hurdles
-
Technology1 month agoSingleStore’s BryteFlow acquisition targets data integration
-
Football1 month ago'Rangers outclassed and outplayed as Hearts stop rot'
-
Sport1 month agoChina Open: Carlos Alcaraz recovers to beat Jannik Sinner in dramatic final
-
Football1 month agoWhy does Prince William support Aston Villa?
-
Technology1 month agoLG C4 OLED smart TVs hit record-low prices ahead of Prime Day
-
News1 month ago▶ Hamas Spent $1B on Tunnels Instead of Investing in a Future for Gaza’s People
-
Sport1 month agoShanghai Masters: Jannik Sinner and Carlos Alcaraz win openers
-
Technology1 month agoMusk faces SEC questions over X takeover
-
MMA1 month agoPennington vs. Peña pick: Can ex-champ recapture title?
-
Sport1 month agoPremiership Women’s Rugby: Exeter Chiefs boss unhappy with WXV clash
-
Sport1 month agoCoco Gauff stages superb comeback to reach China Open final
-
Womens Workouts1 month ago3 Day Full Body Women’s Dumbbell Only Workout
-
Technology1 month agoUniversity examiners fail to spot ChatGPT answers in real-world test
-
Business1 month ago
Bank of England warns of ‘future stress’ from hedge fund bets against US Treasuries
-
Sport1 month agoSturm Graz: How Austrians ended Red Bull’s title dominance
-
MMA1 month ago‘I was fighting on automatic pilot’ at UFC 306
-
News1 month agoGerman Car Company Declares Bankruptcy – 200 Employees Lose Their Jobs
-
Sport1 month agoWales fall to second loss of WXV against Italy
-
Science & Environment2 months agoTime travel sci-fi novel is a rip-roaringly good thought experiment
-
Science & Environment2 months agoNerve fibres in the brain could generate quantum entanglement
-
Business1 month ago
DoJ accuses Donald Trump of ‘private criminal effort’ to overturn 2020 election
-
Travel1 month ago
World of Hyatt welcomes iconic lifestyle brand in latest partnership
-
Business1 month ago
Sterling slides after Bailey says BoE could be ‘a bit more aggressive’ on rates
-
TV1 month agoTV Patrol Express September 26, 2024
-
Money4 weeks agoTiny clue on edge of £1 coin that makes it worth 2500 times its face value – do you have one lurking in your change?
-
Technology1 month agoAmazon’s Ring just doubled the price of its alarm monitoring service for grandfathered customers
-
Technology1 month agoQuoroom acquires Investory to scale up its capital-raising platform for startups
-
MMA1 month agoKetlen Vieira vs. Kayla Harrison pick, start time, odds: UFC 307
-
Technology1 month agoThe best shows on Max (formerly HBO Max) right now
-
Technology1 month agoIf you’ve ever considered smart glasses, this Amazon deal is for you
-
Sport1 month agoURC: Munster 23-0 Ospreys – hosts enjoy second win of season
-
Science & Environment2 months agoHow to wrap your mind around the real multiverse
-
News2 months ago▶️ Media Bias: How They Spin Attack on Hezbollah and Ignore the Reality
-
MMA1 month agoHow to watch Salt Lake City title fights, lineup, odds, more
-
Technology1 month agoJ.B. Hunt and UP.Labs launch venture lab to build logistics startups
-
Business1 month ago
Italy seeks to raise more windfall taxes from companies
-
Business1 month ago
‘Let’s be more normal’ — and rival Tory strategies
-
Business1 month ago
The search for Japan’s ‘lost’ art
-
Sport1 month agoNew Zealand v England in WXV: Black Ferns not ‘invincible’ before game
-
Sport1 month agoMan City ask for Premier League season to be DELAYED as Pep Guardiola escalates fixture pile-up row
-
MMA1 month agoUFC 307’s Ketlen Vieira says Kayla Harrison ‘has not proven herself’
-
News1 month agoTrump returns to Pennsylvania for rally at site of assassination attempt
-
MMA1 month agoKevin Holland suffers injury vs. Roman Dolidze
-
Technology4 weeks agoThe FBI secretly created an Ethereum token to investigate crypto fraud
-
Business1 month agoStocks Tumble in Japan After Party’s Election of New Prime Minister
-
Technology1 month agoTexas is suing TikTok for allegedly violating its new child privacy law
-
Technology1 month agoOpenAI secured more billions, but there’s still capital left for other startups
You must be logged in to post a comment Login