Core Insights - Super Micro Computer (Supermicro) has experienced significant growth due to rising demand for data center servers driven by the AI trend, generating over $21 billion in sales over the past four quarters, compared to less than $6 billion a few years ago [1] - The company is expected to continue growing as spending on AI hardware remains strong, with a current market cap below $20 billion, making it an attractive option for AI investors [2] - However, Supermicro's gross profit margin is projected to be around 7.5% this year, down from more than 15% in 2022, which poses a challenge for profitability [4][5] Financial Metrics - Nearly 93% of Supermicro's revenues are allocated to cover the cost of goods sold, leaving little for overhead and operating expenses, indicating a need for high sales volume to achieve meaningful profitability [5] - The low gross margin suggests that even with significant top-line growth, the bottom line may not improve substantially [6] - Supermicro's forward price-to-earnings multiple is less than 17, which may appear attractive, but this is contingent on estimated profits and could rise if AI server spending slows or if margins do not improve [7]