Super Micro Computer: The (Server) Engine of the AI Revolution
When it comes to artificial intelligence, the heart of the hardware infrastructure undoubtedly beats at Super Micro Computer. This company dominates the market in this sector, and the figures and scale we are discussing here amaze even many experienced observers. Just recently, software giant Microsoft revealed investment plans totaling USD 175 billion, with a good two-thirds of that amount set to go directly toward server hardware. This major announcement promptly drove Super Micro’s stock up by nearly 8%.
The order books are very well filled. Preliminary data points to a significant order backlog of over USD 60 billion. To handle this surge in demand, the company has developed an entirely new series of precision racks from scratch. These “engineering masterpieces” are specifically designed to handle the immense heat generated by upcoming Nvidia chips such as Vera Rubin or GB300. Every month, 3,000 of these state-of-the-art racks now leave the factory floors, 2,000 of which are equipped with direct liquid cooling. That alone is a logistical and technical challenge. Management expects a targeted gross margin of between 15% and 17%.
Yet the stock market would not be the stock market without its downsides. Despite this wave of orders, the shares are trading at around USD 28.40, well below their March 2024 peak of USD 122.90. The reasons behind this sharp decline have tempered investor enthusiasm. Investigations in Taiwan into the alleged illegal export of AI servers to China, along with newly established internal oversight committees, have clouded an otherwise impressive operational picture. **Investors therefore find themselves torn between enthusiasm over the company’s strong operating performance and concerns about internal controls. From a technical perspective, the stock may be in the process of bottoming out somewhere in the USD 20–30 range. A successful rebound from these levels could potentially lift the shares back toward USD 40–50, or even higher. One to watch.
From the battle for dominance in the world’s data centers, we now turn to an industry that leverages technological leadership for security and defence, even in the context of armed conflicts, which illustrates just how quickly a stock can become the absolute focus of the masses.
DroneShield: Price Surge Sparks Significant Interest
DroneShield is truly capturing investors’ attention. The stock of the Australian drone defence specialist recently suffered significant losses, falling by over 25% in July to around EUR 1.05 in German trading and AUD 1.70 in Sydney. This decline was primarily triggered by a disappointing full-year revenue forecast. Although the company increased its revenue by 74% to AUD 125.8 million in the first half of the year, its full-year target of AUD 250 to 270 million fell well short of analysts’ expectations of AUD 323 million. Additionally, a 5% decline in the gross margin to “only” 60% weighed on investor sentiment. It did little to help that management held out the prospect of a recovery in the second half of the year.
In addition to the missed forecasts, governance issues are also causing further uncertainty in the market. An ongoing investigation by the Australian Securities and Investments Commission (ASIC) into possible violations of disclosure requirements regarding insider trading, as well as recent changes in senior management, are clouding and dampening investor confidence.
On the other hand, there are also positive aspects, such as a solid order backlog of AUD 206 million, a virtually debt-free company with over AUD 220 million in cash and cash equivalents, and new orders from Europe.
From a technical perspective, the stock is currently considered oversold with an RSI below 30, though it is possible that the stock could dip below the EUR 1 mark once more before a rebound occurs. Market observers are now looking ahead to the upcoming half-year report on August 26, which should provide further insights into margin trends and business momentum. Stay tuned!
Miivo AI: Intelligent Innovation Takes Shape
While the major technology giants continue to dominate the spotlight, another company is quietly pursuing its ambitions with a clear sense of purpose: Miivo AI. Debt-free and with a lean capital structure of just 38.7 million shares outstanding, the company is focused on a straightforward mission—to bring the power of AI directly to small and medium-sized businesses. Miivo serves as an intelligent operating system that analyzes financial and operational data, transforming it into actionable insights and practical recommendations for business users.
July was a busy month for the management team led by CEO Alexander Damouni. From July 17–19, the company showcased its business at the 100th Capital Event in Kelowna. There, the successful market launch of an automated AI tool for lead generation and the strategic acquisition of Tandem Partners were the focus of discussions with investors.
On July 24, Miivo announced the launch of a new Customer Insights tool. This product enables smaller companies to fully automate the monitoring of their online reputation on platforms such as Google, Instagram, and Reddit using artificial intelligence. The software independently formulates appropriate responses to customer reviews, thereby saving business owners valuable time and resources. This could appeal to some new customers, as such tools are certainly helpful for many companies.
Finally, the technical picture is becoming increasingly compelling. After a strong rally in 2025, the stock consolidated following its early 2026 high of CAD 0.87 and is now trading within a wedge formation. A move above the CAD 0.52–0.54 range could trigger a bullish breakout. The shares are currently trading at around CAD 0.47. If the breakout is successful, the stock could, from a purely technical perspective, retest its previous high of CAD 0.87. Beyond that level, there is little meaningful chart resistance, leaving considerable upside potential. For investors seeking exposure to the AI sector, Miivo AI is emerging as a stock worth keeping on the radar—not only for its scalable business model, but also for its increasingly promising technical setup.
Super Micro Computer stands out with its strong order backlog in the hardware sector, coupled with billions in investments in the cloud segment, but regulatory noise and geopolitical trade conflicts require patience. DroneShield, meanwhile, could emerge as a rebound candidate following its recent sharp correction. That said, the shares may still need time to establish a sustainable bottom, with sentiment in the rapidly evolving defence and security sector likely to remain the primary catalyst. Miivo AI, on the other hand, has been making steady progress with a series of positive corporate developments. Without attracting much fanfare, the debt-free company continues to expand its portfolio of AI solutions tailored to small and medium-sized businesses. Should the stock break out of its current chart pattern, it could unlock significant upside potential.
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