The ongoing scandal involving SuperMicro Computer Inc. (NASDAQ:SMCI) poses a significant challenge to its longstanding partnership with Nvidia (NASDAQ:NVDA), but the impact may not be too harsh, says one expert.
Sachin Ohal, CTO at International Systems Technologies, told Fortune that Nvidia’s reputation won’t affect chip sales, and Supermicro customers’ vendor choices are separate from the ongoing smuggling allegations.
Customers leaving Supermicro face a 3–6 month transition involving board-level vendor reviews, cybersecurity and data center assessments, brand risk analysis, and account management, with funding required for a qualified replacement vendor, Ohal said.
Supermicro’s close-knit network of related companies, led by CEO Charles Liang‘s brothers, gives it a competitive edge by enabling rapid adaptation to regulatory or tech changes.
This embedded structure allows Supermicro to handle critical hardware infrastructure, like chassis and power distribution, so partners like Nvidia can focus on software and chips, making the company highly responsive and indispensable in the data center ecosystem.
“The business reality is that it is not easy to decouple or just leave,” Ohal said.
Nvidia …
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