1. Recent quarters show strong RPO growth, bolstering confidence in SMCI's $40 billion revenue outlook for FY26; 2. Stock expectations reflect margin erosion concerns, but this is seen as a positive sign due to bad news being priced in; 3. Valuations have dropped significantly, making the stock attractive with high growth potential; 4. The stock's performance against the SPX500 suggests potential for alpha generation; 5. A trend of result surprises below consensus is not ideal, but market expectations are not excessive; 6. Elevated net working capital intensity, particularly due to low payable days, is a risk to monitor.
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