During the September 8 episode of Mad Money, a caller asked for thoughts on Super Micro Computer, Inc. (NASDAQ:SMCI), noting a large backlog, gross profit improvement, and low valuation despite owning 200 shares. Jim Cramer replied:
Okay, so SMCI, to me, has some irregularities that are related to accounting. I cannot recommend it. I see the momentum, absolutely, but you know what? I’ve been saying buy Dell, and I think Dell’s better than Super Micro, and I am sticking by that. I think it’s quite, even after this big run, it’s still very, very attractive.
Cramer’s position on SMCI is consistent with earlier comments. On March 17, he said to a caller, “You’re buying Dell. You’re not buying SMCI; you’re buying Dell. I’ve had enough.” On April 13, he again cited accounting concerns, saying, “account irregularities in my book equal sell.”
Dell and Super Micro See Strong AI-Related Demand
Both companies have reported substantial AI-server demand. Super Micro Computer, Inc. said on August 11 that it had generated more than $60 billion in new orders and entered fiscal 2027 with a record backlog. CEO Charles Liang also said: “As demand accelerates, we are improving profitability through a richer enterprise customer mix.”
As for Dell Technologies Inc. (NYSE:DELL), it reported $60.9 billion in AI-server orders in its fiscal second quarter of 2027 and a record $95 billion AI-optimized server backlog. It also reported record revenue of $47 billion in the quarter. Additionally, COO Jeff Clarke said:
IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage, and customers are investing accordingly.
Dell and Super Micro Face Different Risks
Super Micro Computer, Inc.’s principal company-specific issue is its financial reporting controls. In its fiscal 2026 10-K, the company said its internal control over financial reporting was not effective as of June 30, 2026 because of an unresolved material weakness involving information-technology general controls. BDO USA, its independent auditor, said the company did not maintain effective internal control over financial reporting as of June 30, 2026. The adverse opinion applied to internal controls, not the accuracy of the financial statements. Super Micro said it had remediated three previously reported material weaknesses, while the remaining IT-related weakness required additional remediation, testing, and assessment.
Dell Technologies Inc. does not have the same disclosed internal-control issue in its latest annual filing, which reported effective internal control over financial reporting. Its risks are different. The company has identified competitive pressures and reliance on third-party suppliers, including single-source and limited-source suppliers, among factors that could affect its results. It also said in its latest quarter that demand for AI solutions continued to exceed supply, while recent reporting noted constraints involving memory chips and other components in the AI supply chain.
Dell vs. Super Micro Hedge Fund Holdings and Short Interest
Insider Monkey’s Q2 tracking of more than 1,000 hedge funds showed 62 hedge funds holding SMCI, compared with 77 holding DELL. Super Micro’s figure increased from 49 in Q1, while Dell’s rose from 72. Short interest was also higher in Super Micro as it stood at roughly 18% of its public float, while Dell’s was at roughly 4% to 5% of its public float.
Both Dell Technologies Inc. and Super Micro Computer, Inc. are benefiting from strong AI infrastructure demand, but the stocks carry different risk profiles. Super Micro has higher short interest and an unresolved internal-control weakness, while Dell has a larger hedge-fund holder base and effective internal controls in its latest annual filing. Against that backdrop, Cramer continues to favor Dell over Super Micro.
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