Super Micro Computer is making waves in the tech world, with shares climbing about 14% after announcing it has surpassed 100,000 quarterly shipments of graphics processing units (GPUs). This spike in demand is largely driven by the booming field of generative artificial intelligence (AI), which requires powerful hardware to handle vast amounts of data.
Riding the AI Wave
The company has reported that it recently deployed over 100,000 GPUs equipped with its advanced liquid cooling solution (DLC) to some of the largest AI factories in existence. Super Micro is well-known for its innovative cooling technology, which is more efficient than traditional air cooling methods commonly used in data centers. This edge helps them stay at the forefront of AI chip deployments, often being one of the first to receive Nvidia’s latest high-performance chips.
Nvidia’s shares also saw a boost, rising more than 3% amid the growing excitement in the AI market.
A Rebound for Investors
Monday’s stock rally comes as a welcome relief for Super Micro’s investors, especially after the company faced challenges, including a recent short position disclosure by Hindenburg Research. Currently, short interest in Super Micro stands at just over 20% of its free float, estimated to be worth about $3.59 billion.
Market research firm Ortex suggests that the stock’s recent uptick might be influenced by short sellers buying back shares, potentially leading to short-term losses for those holding short positions.
Despite losing more than 9% of its value in the past two weeks, Super Micro’s shares have surged over 66% this year, benefitting from the overall rise in AI-related stocks as Wall Street embraces the “picks-and-shovels” approach to investing in the AI revolution.
New Innovations on the Horizon
In addition to its impressive GPU shipments, Super Micro unveiled a new line of DLC products designed to maximize GPU density per rack, accommodating up to 96 of Nvidia’s Blackwell B200 chips. As these next-generation GPUs hit the market later this year, analysts expect Super Micro’s innovative solutions will help solidify its position and gain even more market share.
Gadjo Sevilla, a senior AI and tech analyst at eMarketer, emphasized the importance of demonstrating these solutions to capitalize on the booming AI sector.
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