Nvidia Stock Surges as Super Micro Announces Readiness of Blackwell-Based AI Systems
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Nvidia Jumps on Super Micro Saying Blackwell-Based System Ready
(Bloomberg) -- Shares of Nvidia Corp. gained on Wednesday after a key partner, Super Micro Computer Inc., said its new AI data center systems powered by Nvidia's advanced Blackwell chips are now ready to ship. Super Micro's product -- which is essentially comprised of the core infrastructure an AI data center developer would need to run Blackwell chips en masse -- has reached "full production availability," the company said in a statement on Wednesday. The news worked to ease some concerns around Nvidia's supply chain constraints, which the chipmaker itself has raised as a challenge in the rollout of its more advanced AI chip. Nvidia's stock jumped as much as 5.1% to $124.64 in New York on Wednesday. The Santa Clara, California-based chipmaker has been facing challenges in ramping up its supply chain to deliver on the production of its new Blackwell chip. Demand for the chips continues to exceed supply. In particular, the company has described the complexities of boosting its supply chain at scale when many custom components are necessary to build its products. "And so almost every company in the world seems to be involved in our supply chain," Nvidia Chief Executive Officer Jensen Huang said on a call with analysts in November. In that same call, he specifically referenced Super Micro, along with SK Hynix Inc., Taiwan Semiconductor Manufacturing Co., Foxconn Technology Group and others, as partners in doing so. The availability of the Blackwell-based products represents a bright spot for Super Micro. The company in December said that it would replace its financial and legal leadership, the culmination of a tumultuous year in which a former employee alleged in federal court that the company had attempted to overstate its revenue. Short-seller Hindenburg Research subsequently referenced the employee's claims in a research report about Super Micro, claiming "glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." Its auditor, Ernst & Young LLP, eventually resigned, citing concerns about the company's governance and transparency. The company is also facing a US Department of Justice probe following the Hindenburg report.
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Nvidia Jumps on Super Micro Saying Blackwell-Based System Ready
Shares of Nvidia Corp. gained on Wednesday after a key partner, Super Micro Computer Inc., said its new AI data center systems powered by Nvidia's advanced Blackwell chips are now ready to ship. Super Micro's product -- which is essentially comprised of the core infrastructure an AI data center developer would need to run Blackwell chips en masse -- has reached "full production availability," the company said in a statement on Wednesday. The news worked to ease some concerns around Nvidia's supply chain constraints, which the chipmaker itself has raised as a challenge in the rollout of its more advanced AI chip.
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Nvidia's shares rise following Super Micro Computer's announcement of production-ready AI data center systems powered by Nvidia's advanced Blackwell chips, easing concerns about supply chain constraints.
Nvidia Stock Rallies on Super Micro's Blackwell-Based System Announcement
Nvidia Corporation's stock experienced a significant boost on Wednesday, climbing as much as 5.1% to $124.64 in New York trading. This surge came in response to an announcement from Super Micro Computer Inc., a key partner of Nvidia, regarding the readiness of their new AI data center systems powered by Nvidia's advanced Blackwell chips
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.Super Micro's Production Milestone
Super Micro Computer Inc. declared that its latest product, which essentially comprises the core infrastructure necessary for AI data center developers to run Blackwell chips at scale, has reached "full production availability"
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. This announcement is particularly significant as it addresses concerns surrounding Nvidia's supply chain constraints, an issue that the chipmaker itself had previously highlighted as a challenge in rolling out its more advanced AI chips2
.Nvidia's Supply Chain Challenges
The Santa Clara-based chipmaker has been grappling with the complexities of scaling up its supply chain to meet the production demands of the new Blackwell chip. The company has noted that demand for these chips continues to outstrip supply. Nvidia CEO Jensen Huang emphasized the intricacies involved in boosting the supply chain at scale, given the numerous custom components required for their products
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.Industry-Wide Collaboration
Huang highlighted the extensive nature of Nvidia's supply chain, stating, "And so almost every company in the world seems to be involved in our supply chain"
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. He specifically mentioned Super Micro, along with other key partners such as SK Hynix Inc., Taiwan Semiconductor Manufacturing Co., and Foxconn Technology Group, as crucial collaborators in this endeavor1
.Super Micro's Recent Challenges
While the availability of Blackwell-based products represents a positive development for Super Micro, the company has faced its share of challenges. In December, Super Micro announced changes in its financial and legal leadership following allegations by a former employee of attempted revenue overstatement
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. These claims were subsequently referenced in a report by short-seller Hindenburg Research, which raised concerns about the company's accounting practices and governance1
.Related Stories
Ongoing Investigations
The allegations have led to further complications for Super Micro. The company's auditor, Ernst & Young LLP, resigned citing concerns about governance and transparency. Additionally, Super Micro is currently facing a probe by the U.S. Department of Justice in the wake of the Hindenburg report
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.Implications for the AI Industry
The readiness of Super Micro's Blackwell-based systems marks a significant milestone in the AI hardware landscape. As demand for advanced AI chips continues to grow, the ability of key players like Nvidia and its partners to overcome supply chain challenges and bring new technologies to market will be crucial in shaping the future of AI infrastructure and capabilities.
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