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As a software company, Palantir has best-in-class gross margins above 80%. This has enabled the company to expand its operating margin to around 12% over the past 12 months and 16% last quarter. As we will see, looking at Super Micro Computer can't compete with Palantir when it comes to the unit economics of its business.

Supermicro has already been struggling with investors, and now the company will face new competition in the AI server market.