00:00 Speaker A
All right, let’s get to some calls of the day here. JP Morgan, they upgrade Super Microcomputer from underweight to neutral. So, not bullish, but less bearish. Uh, they talked about uncertainty about pending SEC filings may be behind us here, Julie, here they say the company’s on the cusp. Here’s the dramatic part. Of benefiting from the ramp and blackwell based server shipments which you’re already seeing materially higher demand than the prior generation.
00:41 Julie Hyman
I seem to recall, Corey Johnson, do you own this stock, or you No, you don’t own this stock.
00:47 Corey Johnson
No. No. No. I don’t give stock advice. I do not own it.
00:50 Julie Hyman
But I remember us talking to you about this one.
00:53 Corey Johnson
Yes, not just no. God, no. Well, I don’t like to own stocks where the the CEO and the company have been involved in serial restatements, delisting, um, uh, you know, I I’ll call it bogus investigation their investigation of their accounting problems. The committee was a one-person committee who was on the board of directors who came back and said nothing to see here. We’re going to hire some more people later.
01:19 Julie Hyman
Well, it’s enough for J.P. Morgan. They think
01:23 Corey Johnson
The analyst at JP Morgan, good luck to you.
01:28 Julie Hyman
Well, okay. So let’s talk about though the, you know, what they do, which is to provide, you know, when you were talking about Jensen Huang holding up the GPU, yeah, exactly. So there so there is in theory demand for these kinds of things.
01:40 Corey Johnson
They build the stuff that goes in data centers.
01:44 Corey Johnson
The question is, are they is a corporate customer going to go to Super Micro? Are they going to go to HPE? Are they going to go to Dell? And what we’ve seen from HPE and Dell is that their business has not I I really expected that both those businesses would start picking up share because I was hearing things like that in the market. And you didn’t see that from Dell, or really from HP, either.
02:05 Julie Hyman
You mean you mean, Corey, you expected as Super Micro’s kind of pain would be their gain?
02:10 Corey Johnson
Right. And that didn’t really has yet to materialize. But there have also been concerns and Hindenburg brought this out in their great report about Super Micro that there are concerns about the quality of products of Super Micro. Um, uh, and that there have been returns. There’s online forums where you can see people talking about problems with some of their equipment. Um, now there’s problems with all kinds of equipment out there, but, um, I think it’s certainly something. And this is this JP Morgan note was not a “go out and buy the stock” and they upgraded to a neutral means it started in a basement.
03:01 Julie Hyman
Yeah. Do do you look by the way at the competitive landscape, like Dell, HPE? Do you see one of those two having certain competitive advantages in that market?
03:11 Corey Johnson
Uh, no, I I mean, I I’m super impressed with what’s happening at HPE. I mean, Antonio Neri is just such a fantastic job with a business that has been so bad for so long. I I just I’m constantly amazed when I’m on that conference call or when I’m updating my model, like, these numbers are pretty good. I’ve never said that about HPE or HP, you know, going back to the pre-Carly Fiorina days.
03:43 Julie Hyman
Oh, gosh. Yes. Way back.
03:48 Corey Johnson
Um, so, uh, you know, again, the demand for what’s happening in data centers right now, the spending, the numbers coming out are just jaw-dropping. I mean, the hundred billion dollar Stargate discussion that was suddenly 500 billion. But the giant numbers from, um, and I can’t rattle them off top my head, but call it between 50 and 70 billion dollars from Amazon, Meta, um, Microsoft, um, you know, the spending is going to be just so huge. There’s a lot of work out there for all these companies.