Comments on: HPE Is Also Having Trouble Making Money With AI Servers

By: emerth

emerth — Tue, 11 Jun 2024 19:22:56 +0000

In reply to Timothy Prickett Morgan. Thanks!

By: Timothy Prickett Morgan

Timothy Prickett Morgan — Sat, 08 Jun 2024 02:06:10 +0000

In reply to emerth. Last time I looked, Supermicro has expanded revenues like crazy, but it is not making as much as you might think in profits. Colloquially, "making money" means profits, not revenues. In the last quarter ended in March, Supermicro brought 10.5 percent of revenues to the bottom line, but it is doing a huge amount of integration and testing work above and beyond what HPE and Dell do so machinery that rolls in needs only three plugs to be useful: Power, cooling, and network. If you average Supermicro's quarterly numbers since the beginning of calendar 2018, it has brought 6.1 percent of revenues to the bottom line. This level of profitability is fairly new, and is still nothing like the 56 to 57 percent of revenue that Nvidia is posting for net income in its recent quarters.

By: emerth

emerth — Fri, 07 Jun 2024 23:51:16 +0000

Thanks Timothy. How is it that Supermicro is just swimming in money? Supermicro does not go in much for the whole cradle to grave we will hold your hand thing – does that help it’s bottom line?

By: Anthony Stevens

Anthony Stevens — Fri, 07 Jun 2024 17:31:35 +0000

Thanks for the numbers, here are some more numbers (from MarketWatch):
HPE $455K rev/employee
DELL $748K
SMCI $2.3M

INTC $442K
AMD $877K
NVDA $2.7M