Supermicro Stock Just Jumped 20%. Why I'm Passing and Buying This AI Leader Instead.

Supermicro's stock surged 20% after announcing strong Q2 preliminary results with improved gross margins of 15-17%, driven by AI infrastructure demand and supply shortages. However, the analyst recommends buying Nvidia instead, citing Supermicro's low-margin business model, history of controversy (including a Taiwan office raid related to chip smuggling), and the fact that most value resides with Nvidia's GPUs rather than the integrator.