Jim Cramer Favors Dell (DELL) Over Super Micro (SMCI) as AI Server Demand Surges

During the September 8 episode of Mad Money, Jim Cramer discussed Super Micro Computer, Inc. (NASDAQ:SMCI) and its challenges. He mentioned that the company has some accounting irregularities that make him unable to recommend it. He expressed his preference for Dell Technologies Inc. (NYSE:DELL) over SMCI, stating that he still believes Dell is a better investment.

Cramer's stance on SMCI remains consistent with his earlier comments, where he advised buying Dell instead of SMCI due to accounting concerns. Both companies have experienced significant demand for AI servers, with SMCI reporting over $60 billion in new orders and a record backlog as of fiscal 2027. DELL also saw substantial AI-server orders, with a $95 billion AI-optimized server backlog and $47 billion in revenue for the quarter.

However, SMCI faces a material weakness in its internal control over financial reporting, which was not effective as of June 30, 2026. This issue is not present in DELL's latest annual filing, where they reported effective internal control over financial reporting. The article highlights that while both companies benefit from strong AI infrastructure demand, DELL has a larger hedge-fund holder base and effective internal controls, making it a more attractive investment compared to SMCI.