Competitive Landscape

Super Micro Computer (SMCI) shares plunged 10% in after-hours trading as fiscal first-quarter results missed analyst expectations. EPS was 35 cents (adj.) versus 40 cents expected, and revenue reached $5.02 billion, below the $6 billion forecast. Revenue declined 15% year-over-year. Net income also more than halved. The company cited “design win upgrades” for the shortfall, shifting revenue to Q2, where they now forecast $10-$11 billion in sales. Despite benefiting from AI growth, SMCI’s growth seems to have slowed amid increasing competition.

Mercor, an AI startup training AI models, secured $350M in a Series C round led by Felicis, valuing the company at $10B. The funding will expand talent, improve matching systems, and accelerate delivery. Mercor utilizes a network of 30,000 experts, paying them over $1.5M daily to provide nuanced training. The company benefited from market shifts after Meta’s investment in Scale AI, creating an opening for providers like Mercor. However, it faces competition from other players in the data-labeling and AI training space.

Gree’s Chairwoman Dong Mingzhu described the home appliance industry as relentlessly “cutthroat,” driven by price competition rather than technological advancement. She stressed the importance of genuine dedication and quality, advising manufacturers to focus on creating energy-efficient, comfortable, and health-conscious products. Dong emphasized that manufacturers should avoid deceiving consumers with cheap, low-quality goods, as this ultimately erodes customer trust and respect. She believes maintaining high quality standards will ultimately be recognized by consumers.