Super Micro Computer's Stock Surges Amid High AI GPU Shipments and Cooling Innovation

Super Micro Computer Shares Surge on Shipment News. Can the Stock Continue to Rebound? | The Motley Fool

After a strong start to the year, shares of Super Micro Computer (SMCI 2.86%) have been under a lot of pressure following a disappointing earnings report, unwanted attention from a notable short-seller, the delay of its annual 10-K filing, and a possible investigation by the Department of Justice (DOJ). However, the stock rallied after the company put out a press release that mentioned its quarterly shipment volume. Against that backdrop, let's take a closer look at the company's recent announcement, what it means, and whether it can be the start of a bigger rebound for the stock. As part of an announcement introducing new cooling technology, Supermicro slipped into the press release headline that it is currently shipping over 100,000 graphics processing units (GPUs) per quarter. It clarified in the release that it has recently deployed more than 100,000 GPUs with direct liquid cooling (DLC) solutions for some very large data centers built to power artificial intelligence (AI) applications. Now, it is important to understand what exactly Supermicro does as it relates to this statement. It does not design GPUs like Nvidia or manufacture them like Taiwan Semiconductor. What it does is purchase components, such as GPUs, and then design and assemble servers and rack solutions for customers. The company doesn't offer the same level of support as branded servers made by Dell, but it sells them at much lower prices. Supermicro has also carved out a niche by being one of the first server companies to embrace DLC. GPUs generate a lot of heat, so they must be kept cool to avoid failure and to help save on energy costs. To promote this technology, Supermicro is charging the same price as the more standard air-cooled systems. While Dell also has DLC technology, it is just starting to ramp it up, so Supermicro has a first-mover advantage. Selling a lot of high-priced GPUs will boost revenue, but the company is not collecting a big markup on those chips. As such, it has quite low gross margins, which have come under pressure recently. Last quarter, its gross margin dropped to 11.2%, down from 17.0% a year go. By comparison, Nvidia reported a gross margin of 75% in its latest quarter, while contract manufacturer Taiwan Semiconductor had a gross margin of 53%. Beyond the margin pressure, Supermicro stock has come under fire following allegations from Hindenburg Research of accounting manipulation, violated sanctions, and management self-dealing. A few years ago, the company settled with the SEC for $17.5 million over similar accounting issues, though the company never admitted to the SEC's claims. And to make matters worse, Supermicro has delayed the filing of its annual report in the wake of Hindenburg's short report. Since then, The Wall Street Journal also reported that the DOJ was probing the company over accounting issues, although neither party has confirmed the existence of an investigation. As troubling as some of the developments may be, Supermicro is clearly benefiting from the billions of dollars being poured into AI infrastructure buildouts. It may not have a particularly wide moat, but with large tech companies scooping up GPUs in a massive arms race, it will continue to benefit. The stock is not expensive, either, as it trades at 14 times analysts' fiscal 2025 earnings estimate. This isn't a stock you should expect to command a high price-to-earnings multiple, but with the AI growth opportunity in front of it, it does look undervalued. The question, of course, is what comes next? There are a number of scenarios where the stock can rally, but Supermicro remains a risky pick because of the uncertainty surrounding its annual report and the possible DOJ investigation. Investors should approach the stock with caution.

Could This 1 Piece of News Turn Things Around for Super Micro Computer? | The Motley Fool

Recent news offers a reason to be optimistic about the company's future. Super Micro Computer (SMCI -1.73%) stock soared through the first half of the year with a triple-digit gain that even beat that of artificial intelligence (AI) market star Nvidia. The reason for this positive momentum was simple: Customers flocked to Supermicro for its servers and other equipment for their AI data centers, and this translated into triple-digit revenue growth. In recent weeks, however, Supermico has faced some headwinds, and these have weighed on the share performance of this once high-flying stock. Hindenburg Research released a short report, alleging troubles at the company -- and a few weeks later, The Wall Street Journal reported that the Justice Department had launched a probe into the company. On top of this, Supermicro is late filing its 10-K annual report, a move that made investors worry about the possibility of changes to earnings figures. A few days ago, however, the company released one piece of news that could be worth billions of dollars -- could this turn things around for this recently suffering stock? First, a bit of background on Supermicro and its path so far. The company makes workstations, servers and other equipment central to today's AI data centers. It works closely with the major chip designers, including Nvidia, to immediately include their latest innovations in its products. This has prompted customers to turn to this equipment maker because they know they can quickly get their hands on the latest technologies. The result is booming earnings, with sales in the latest quarter rising in the triple digits and net income gaining in the double digits. As of this year, the company's quarterly revenue has topped annual revenue as recently as 2021. Now a look at the recent challenges. The Hindenburg report includes allegations of "glaring accounting red flags" -- but Supermicro responded, calling statements in the report "false or inaccurate." It's also important to remember that Hindenburg's short position in the stock means it has a bias toward the stock falling -- and that makes it difficult to rely on it as a source of information. Supermicro declined to comment on the WSJ report. As for the 10-K delay, the company said it doesn't expect any major changes to earnings results. Though Supermicro's response should ease some of investors' concerns, the stock still has stagnated -- until this week, when the company released one piece of encouraging news. Supermicro said that it's currently shipping more than 100,000 graphics processing units (GPU) for AI per quarter. If the price of an Nvidia GPU is about $30,000, the order value would amount to billions of dollars. Another very important detail: Supermicro says it's confirming its position as the leader in the liquid cooling market after delivering more than 2,000 liquid-cooled racks since June. Why is this news so important? The GPU news reinforces what we've seen so far in Supermicro's earnings reports -- that demand for its systems is strong, which is translating into billions of dollars in revenue. The liquid cooling trend also is key because this space could be a significant growth driver in the months and years to come. One of the biggest challenges in an AI data center is the heat produced by these levels of computational power -- but liquid cooling is a very effective way of handling that problem. Supermicro has built expertise in the area and predicts it could dominate in this new growth market. Let's get back to our question: Could this turn things around for Supermicro? This clearly is a positive sign for the company's earnings in the coming quarter and beyond and should boost the confidence of investors who may be worried about the company's earnings potential. Still, the short report and Wall Street Journal article may continue to weigh on the stock until uncertainties are completely lifted. What does this mean for investors? Cautious investors should remain on the sidelines as the recent challenges remain a risk for the stock. But aggressive investors, with their confidence lifted by the recent Supermicro news, might see now as a great opportunity to buy this AI stock on the dip.

Why Artificial Intellingence (AI) Stock Super Micro Computer Popped This Week | The Motley Fool

A short-seller report knocked the stock down, but Supermicro says business is booming. Super Micro Computer (SMCI -1.46%) stock has gotten crushed over the last six months. Shares of the provider of server, storage, and coolant systems for the massive data center buildout have been cut in half during that time. But the stock is still up by over 60% year to date from high demand as large technology companies work to quickly expand artificial intelligence (AI) computing capacity. This week, shares began to recover from the recent slump and were higher by about 13% as of Thursday afternoon, according to data provided by S&P Global Market Intelligence. After surging earlier in 2024, Supermicro shares began to sink after a report from short-seller Hindenburg Research claimed it found "glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." Hindenburg noted it had a short position in the stock. Shares plummeted further after Supermicro announced it was delaying the 10-K annual report filing for its fiscal 2024 year ended June 30. But since then, CEO Charles Liang said in a letter to customers that the company doesn't anticipate any material changes to the previously released financial reports, and that the business remains on track. He assured customers that engineering, production, and sales of its large-scale AI solutions have not been affected. In a follow-up to that this week, along with the company introducing a new liquid cooling product, it revealed that it was currently shipping Nvidia's GPUs (graphics processing units) at a rate of over 100,000 per quarter. With Nvidia Blackwell chips reportedly expected to cost at least $30,000, that translates into billions in quarterly sales for Supermicro. That could mean Supermicro's revenue growth continues to outperform expectations in coming quarters. It's why investors jumped back into the stock this week, too. But investors will also want to monitor profit margins. Gross profit margin of 11.2% dropped from 17% year over year in the fiscal Q4 period ended June 30. If that decline continues, this week's stock spike might not last.

Super Micro Computer Stock Volatile On 100K GPU Shipments: Can AI Hype Keep It Up? - Super Micro Computer (NASDAQ:SMCI)

Despite the rally, SMCI remains down 50% since March, facing legal probes and bearish technical indicators. Super Micro Computer Inc. SMCI has been riding the AI wave for some time, and its latest announcement sent the stock soaring again. Shares jumped 15% after the company revealed it's shipping over 100,000 GPUs per quarter, a figure that could translate into billions of dollars in potential revenue, with GPUs being the core hardware behind AI development and deployment. But while the stock got a short-term boost, questions about its sustainability loom large. It soon receded and was down by about 7% by 1:30 PM ET. AI Infrastructure Powers Stock Surge Super Micro has been a major player in supplying AI infrastructure, and the latest GPU shipment announcement highlights its role in powering some of the biggest AI data centers. The company's new liquid cooling technology also caught Wall Street's attention, as it promises to reduce costs and optimize hardware for data centers that run constantly. But there's a wrinkle: Super Micro has been dealing with investigations, including a Department of Justice probe following short-seller allegations of accounting issues. Read Also: Super Micro Down 60% Since Joining S&P 500, Barclays Drops Bull Stance On 'Customer Erosion And Weak AI Server Margins' Headwinds Persist Despite Rally Even with this impressive GPU announcement, Super Micro is battling broader headwinds. Despite the recent rally, the stock remains down over 50% since peaking in March, and technical indicators suggest the path ahead could be rocky. Chart created using Benzinga Pro Currently trading at $44.44, the stock is below both its 50-day and 200-day simple moving averages ($50.23 and $70.92, respectively), which are typically bearish signals. Read Also: What's Going On With Super Micro Computer Stock? Bullish Signs, But Uncertainties Remain Still, the stock price sits above its eight-day and 20-day SMAs, signaling near-term bullish potential. Chart created using Benzinga Pro The MACD, however, remains negative, and while the RSI at 47.36 isn't in overbought territory, it suggests that investor enthusiasm could face hurdles. The AI demand boom has propelled Super Micro, but with ongoing legal and financial uncertainties, the real question is whether this surge can last. For now, it seems like investors are still very much along for the ride. Read Next: Stocks Fall As Oil Prices Spike, 10-Year Yields Top 4%; Energy Sector Outperforms: What's Driving Markets Monday? Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Super Micro stock surges 15% on high AI demand

Server company Super Micro Computer (SMCI) unveiled a new liquid cooling solution for AI data centers on Monday, while also revealing it's shipping over 100,000 graphics processing units (GPUs) quarterly -- news that sent its stock climbing more than 15% in midday trading. Based on current market prices for high-end AI GPUs, which can range from $10,000 to $40,000 each, Super Micro's quarterly GPU shipments could represent a potential revenue stream of $1 billion to $4 billion. The server company's shares are up 65.43% so far this year. This significant GPU shipment volume dovetails with Super Micro's advancements in cooling technologies for AI infrastructure. The company's cooling solutions are "reducing costs and improving performance" at "state-of-the-art AI factories," Charles Liang, chief executive of Super Micro, said in a statement. The company also said it has "recently deployed" over 100,000 GPUs with its liquid cooling solution to "some of the largest AI factories ever built." "The combination of Supermicro deployment experience and delivering innovative technology is resulting in data center operators coming to Supermicro to meet their technical and financial goals for both the construction of greenfield sites and the modernization of existing data centers," Liang said. In August, Super Micro's shares fell 22% after it was accused of accounting manipulation and other questionable business deals by short-seller Hindenburg Research. The three month investigation found "glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues," the report said. Super Micro saw its shares fall over 13% in May after it missed analysts' expectations for revenue in the third quarter. The company reported revenue of $3.85 billion in the fiscal third quarter, falling below Wall Street's expectations of $3.95 billion. However, its revenue was more than double revenue of $1.28 billion from the previous year.

Super Micro shares soar after server company says it's shipping over 100,000 AI GPUs per quarter

Super Micro Computer shares jumped 15% after the computer server company said it's shipping more than 100,000 graphics processing units used for artificial intelligence per quarter. That could translate into several billions of dollars of orders if the average price of a GPU is around the cost of Nvidia's $30,000 chip. The GPU figure was revealed in an announcement about a new cooling product unveiled by Super Micro on Monday. As one of the biggest beneficiaries of the AI boom, Super Micro makes computers that companies use as servers for data storage, websites, AI training models and more. The company said its new cooling product will allow data centers to spend less on hardware costs and cooling infrastructure for servers that typically need to be running constantly. Super Micro also said it recently deployed more than 100,000 GPUs with liquid cooling solution "for some of the largest AI factories ever built," as well as other cloud service providers. While the announcement was cheered by Wall Street, Super Micro is about nine weeks behind in reporting its annual report, which was expected in August. The company said late that month that management needed additional time "to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024." Even after Monday's rally, the stock is down by well over 50% since peaking in March. Shares fell 12% on Sept. 26, after the Wall Street Journal reported the Department of Justice opened a probe into the company following a report from short-seller Hindenburg Research in which the firm alleged it identified "fresh evidence of accounting manipulation."

Super Micro shares surge as AI boom drives 100,000 quarterly GPU shipments

Oct 7 (Reuters) - Super Micro Computer (SMCI.O), opens new tab said on Monday it is currently shipping more than 100,000 graphics processors per quarter and unveiled a new suite of liquid cooling products, sending the AI server maker's shares up about 14% following a weeks-long slump. A boom in generative artificial intelligence technology has bumped up demand for the hardware required to process the large amounts of data genAI uses, helping Super Micro, which makes servers featuring leading AI chips including Nvidia's (NVDA.O), opens new tab. Advertisement · Scroll to continue It "recently deployed more than 100,000 GPUs with liquid cooling solution (DLC) for some of the largest AI factories ever built," Super Micro said in a statement. The company is acclaimed for its liquid cooling technology, which boasts greater power-saving than the air cooling techniques used in some data centers. It is also typically among the first to receive Nvidia's coveted AI chips. Nvidia's shares were up more than 3%. Advertisement · Scroll to continue Monday's rally provides a breath of relief to Super Micro's investors after the stock was slammed by mounting troubles, including Hindenburg Research disclosing a short position in the company last month. Short interest in Super Micro is just over 20% of its free float, worth about $3.59 billion, market research firm Ortex estimated. "If this is related to short sellers trying to buy back shares or not is too early to tell at this point, but at the current price, short sellers are making short-term losses and may choose to close their positions," Ortex said, noting this could have added to the stock's gains on the day. Super Micro's shares lost more than 9% of their value over the last two weeks, but are still up more than 66% this year, benefiting from a rally in AI-linked shares amid Wall Street's booming "picks-and-shovels" trade. The company also launched a new range of DLC products, which would enable the "highest GPU per rack density", with up to 96 of Nvidia's Blackwell B200 chips per rack. "Providing demonstrable solutions will help the company gain market share, especially once the newer Nvidia Blackwell GPUs come to market later this year," said Gadjo Sevilla, senior AI and tech analyst for eMarketer. Reporting by Arsheeya Bajwa, Medha Singh and Deborah Sophia in Bengaluru; Editing by Pooja Desai Our Standards: The Thomson Reuters Trust Principles., opens new tab

Veteran fund manager looks at server demand as Super Micro makes major AI move

At first glance, a review of artificial intelligence can feel like a deep dive into a vat of alphabet soup. What's with all the acronyms? AI, GPUs, ASPs, CPUs--it's enough to make you put your head back and wail "ay, ay, ay." Don't miss the move: Subscribe to TheStreet's free daily newsletter But this stuff is important if we're to believe any number of reports that tell us AI is here to reboot our reality. Servers receive, store, and share data, and AI models work best on servers with good processing power. Spending in the server market grew 64.1% in the second quarter, driven by high application service providers. The figure reflects higher shipments of graphics processing unit servers to hyperscalers and other large IT buyers, according to the market research firm IDC. Hyperscalers are major cloud services and infrastructure providers, such as Amazon and Alphabet. An aging installed base is primed for refresh, and the launch of new generation processors late in 2023 is contributing to this cycle within 2024, as the tech transition to new [central processing unit] platforms gradually moved forward but has picked up the pace in Q2 2024," IDC said. A CPU is the core computational unit in a server. IDC said that the market is expected to grow at a 16% compounded annual growth rate over the next five years. Super Micro CEO: deployment in 'weeks, not months' "The biggest impact and change to the forecast in this release is the addition of more expected demand for GPU servers, as well as a faster recovery in the short term of nonaccelerated servers," the firm said. Super Micro (SMCI) saw its shares soar on Oct. 7 after the company, which makes high-end servers used in artificial intelligence, said that it recently deployed more than 100,000 GPUs with liquid cooling solutions "for some of the largest AI factories ever built, as well as other [cloud-service providers]." Related: Analysts update outlook for Nvidia's Blackwell chips amid AI boom "Super Micro continues to innovate, delivering full data center plug-and-play rack scale liquid cooling solutions," Charles Liang, president and CEO of Super Micro, said in a statement. "Our complete liquid cooling solutions, including SuperCloud Composer for the entire life-cycle management of all components, are now cooling massive, state-of-the-art AI factories, reducing costs and improving performance," he said. Data center operators are "coming to Super Micro to meet their technical and financial goals for both the construction of greenfield sites and the modernization of existing data centers," Liang said. "Since Super Micro supplies all the components, the time to deployment and online" is "weeks, not months," he added. The company said many organizations require the highest-performing GPUs and CPUs to remain competitive and need these servers to run constantly. "Super Micro's ultra-dense server with dual top-bin CPUs and 8 Nvidia (NVDA) HGX GPUs in just 4U with liquid cooling is the ultimate AI server needed in AI factories," the company said. "When installed in a rack, this server quadruples the computing density, allowing organizations to run larger training models with a smaller data center footprint." More AI Stocks: Super Micro shares are down nearly 50% year-to-date. The company's stock took a beating late last month when The Wall Street Journal reported that the U.S. Department of Justice was investigating the company after short-seller Hindenburg Research alleged "accounting manipulation" at the AI-server maker. Hindenburg said that it "found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." Veteran analyst hesitates on SMCI In his column on TheStreet Pro, Stephen "Sarge" Guilfoyle, a longtime Wall Street analyst and trader, says that taken together, the stock-price runup, the Hindenburg report and the Justice Department inquiry are "a whole lot of baggage where the outcomes remain uncertain. That is quite a bit to overlook when putting valuable capital to work." Related: Short-seller blasts Super Micro stock in latest report In a few weeks, Wall Street expects a strong quarterly report from Super Micro, with earnings doubling and revenue tripling, Guilfoyle says. "Seems awesome, right? Except that operating and free cash flows have been negative for three consecutive quarters," he says. The balance sheet, he says, "is as healthy as a horse if one looks at current and quick ratios alone." But he's concerned that a substantial chunk of its "current assets are in inventories when the firm is on the cutting edge of new technology all of the time," Guilfoyle says. "How much of those inventories will hold their value? I honestly don't know. What are the margins on the latest products that seem vital to Nvidia?" Guilfoyle sums up his opinion on Super Micro, saying, "I am OK with a short-term trade as long as one understands what they are doing. What I will not do is invest on or against this name until we know more about the outcome. Risk management is rule number one when managing one's own capital." Related: The 10 best investing books, according to our stock market pros

AI company Super Micro rebounds despite short seller allegations and reported DOJ investigation

Super Micro has had a rocky few weeks due to a short seller investigation and a reported DOJ investigation. Nonetheless, shares for the AI hardware manufacturer rose over 20% over the past day after the company announced it would be shipping 100,000 GPUs per quarter. The stock price has since dipped but still remains at nearly 10% above where it started the week. As the hype around the AI sector drives demand for related stocks, from manufacturers to utilities, and attracts billions of dollars worth of venture funding in private companies, Super Micro's recent success -- which came after a dismal stretch -- reflects investors' continued appetite, regardless of risks. Founded in 1993, Super Micro focuses on producing servers and storage systems for a variety of industries, from data centers to 5G. Its stock exploded after the launch of OpenAI's ChatGPT in November 2022, with Super Micro's share price rising from around $8 at the start of 2023 to a peak of $114 in March 2024. Even before August's short seller investigation released by the prominent firm Hindenburg Research, Super Micro faced a series of controversies, including a 2018 Bloomberg report claiming that Chinese officials had forced a backdoor into Super Micro's servers, as well as a 2020 settlement with the Securities and Exchange Commission over violations in accounting practices. The allegations by Hindenburg, however, revived concerns about the company. In its report, the short seller argued that Super Micro had "ridden the wave of AI enthusiasm" but was still guilty of "accounting manipulation," including pushing salespeople to ship defective products and rehiring executives involved in the previous scandal. The company's stock fell by as much as 26% on the day following the report. The day after the report, Super Micro announced that it would not file its annual financial forms on time because it needed to assess the "operating effectiveness of its internal controls." In early September, Super Micro's CEO Charles Liang sent a letter to customers and partners saying that the report and delay would not affect the company's products. Despite the assurances, Super Micro faced further scrutiny when the Wall Street Journal reported in late September that the Justice Department was investigating the company following Hindenburg's allegations, with a U.S. prosecutor in the DOJ's San Francisco office contacting people holding relevant information. While Super Micro's stock continued to hover around $40 in early October, its announcement on Monday sent shares soaring. In a press release, the company touted its proprietary GPUs, a critical component used by data centers to train and deploy AI models. Even with the recent rally, Super Micro is still delayed in filing its annual report and continues to face investor pushback, including two class-action lawsuits alleging that the company misrepresented or failed to disclose information to its backers.

What's Going On With Super Micro Computer Stock? - Super Micro Computer (NASDAQ:SMCI)

SMCI shares climbed more than 15% on Monday after the company highlighted its recent deployments of over 100,000 GPUs. Super Micro Computer, Inc. SMCI shares climbed in premarket trading Tuesday, but plunged at the opening bell. The company announced the launch of a high-density infrastructure platform optimized for AI inferencing at the network edge. The Details: Super Micro announced the launch of its 3U Edge AI inferencing system which supports eight dual-width GPU accelerator cards and is capable of running in traditional air-cooled environments. The SYS-322GB-NR includes two Intel Xeon 6900 processors with P-cores, 8800 MT/s MRDIMM and up to 20 PCIe 5.0 expansion slots. Additionally, the server features up to 6TB of RDIMM memory and up to 14 E1.S or 6 U.2 NVMe drives. Read Next: Google Must Open Play Store To Competitors, Judge Orders "Owing to the system's optimized thermal design, Supermicro can deliver all this performance in a high-density 3U 20 PCIe system with 256 cores that can be deployed in edge data centers," said Charles Liang, president and CEO of Supermicro. "As the AI market is growing exponentially, customers need a powerful, versatile solution to inference data to run LLM-based applications on-premises, close to where the data is generated. Our new 3U Edge AI system enables them to run innovative solutions with minimal latency," Liang added. What Else: SMCI shares climbed more than 15% on Monday after the company highlighted its deployment of over 100,000 GPUs for some of the largest AI factories ever built. The company also announced a complete liquid cooling solution that includes powerful Coolant Distribution Units (CDUs), cold plates, Coolant Distribution Manifolds (CDMs), cooling towers, and end-to-end management software. Super Micro stock has been under pressure recently after the Department of Justice launched a probe into the company following an August short report from Hindenburg Research. The short report highlighted allegations by former employee Bob Luong over the AI server company's inappropriate revenue recognition policies and the re-hiring of employees the company had terminated due to involvement with past accounting violations. SMCI Price Action: According to Benzinga Pro, Super Micro Computer shares are down 5.97% at $44.87 at the time of publication Tuesday. Read Also: Generac Stock Powers Up Ahead Of Hurricane Milton Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Super Micro Computer Stock Surges as AI Demand Drives Shipments

Super Micro Computer (SMCI) shares soared Monday as the server maker reported strong shipments of its central processing units (CPUs), driven by artificial intelligence (AI) demand. The company said it recently deployed 100,000 CPUs with its liquid cooling technology to "some of the largest AI factories ever built." Super Micro Computer also announced a new lineup of direct liquid cooling products for servers that it said could help AI firms cut their energy costs. CEO Charles Liang said the company's liquid cooling solutions "are now cooling massive, state-of-the-art AI factories, reducing costs and improving performance." Liang added that data center operators are coming to Super Micro Computer "to meet their technical and financial goals for both the construction of greenfield sites and the modernization of existing data centers." Super Micro Computer shares were up over 13% at $46.77 in intraday trading Monday, and have gained about two-thirds of their value since the start of the year. Shares of AI chipmaker Nvidia (NVDA), a partner of Super Micro Computer, also got a boost Monday and have more than doubled in value in 2024 so far.

Super Micro shares surge as AI boom drives 100,000 quarterly GPU shipments

(Reuters) - Super Micro Computer said on Monday it is currently shipping more than 100,000 graphics processors per quarter and unveiled a new suite of liquid cooling products, sending the AI server maker's shares up about 14% following a weeks-long slump. A boom in generative artificial intelligence technology has bumped up demand for the hardware required to process the large amounts of data genAI uses, helping Super Micro, which makes servers featuring leading AI chips including Nvidia's. It "recently deployed more than 100,000 GPUs with liquid cooling solution (DLC) for some of the largest AI factories ever built," Super Micro said in a statement. The company is acclaimed for its liquid cooling technology, which boasts greater power-saving than the air cooling techniques used in some data centers. It is also typically among the first to receive Nvidia's coveted AI chips. Nvidia's shares were up more than 3%. Monday's rally provides a breath of relief to Super Micro's investors after the stock was slammed by mounting troubles, including Hindenburg Research disclosing a short position in the company last month. Short interest in Super Micro is just over 20% of its free float, worth about $3.59 billion, market research firm Ortex estimated. "If this is related to short sellers trying to buy back shares or not is too early to tell at this point, but at the current price, short sellers are making short-term losses and may choose to close their positions," Ortex said, noting this could have added to the stock's gains on the day. Super Micro's shares lost more than 9% of their value over the last two weeks, but are still up more than 66% this year, benefiting from a rally in AI-linked shares amid Wall Street's booming "picks-and-shovels" trade. The company also launched a new range of DLC products, which would enable the "highest GPU per rack density", with up to 96 of Nvidia's Blackwell B200 chips per rack. "Providing demonstrable solutions will help the company gain market share, especially once the newer Nvidia Blackwell GPUs come to market later this year," said Gadjo Sevilla, senior AI and tech analyst for eMarketer. (Reporting by Arsheeya Bajwa, Medha Singh and Deborah Sophia in Bengaluru; Editing by Pooja Desai)

Super Micro Computer (SMCI) Tries To Reset The Narrative Around Its Delayed Annual Report Filing Saga By Announcing That It Is Now Delivering 100,000 Liquid-Cooled GPUs To "AI Factories" Every Quarter

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. Super Micro Computer (SMCI) is in an unenviable position right now: its fundamental business metrics continue to improve at an astounding scale but the ensuing euphoria is heavily tempered by the company's ongoing delays in filing the requisite annual report for FY 2024. As speculation mounts in the wake of a high-profile short research report, the stock has remained largely flat since the 28th of August, when the filing delay was first announced. Perhaps in a bid to reset the narrative, Super Micro Computer has now announced "a complete liquid cooling solution that includes powerful Coolant Distribution Units (CDUs), cold plates, Coolant Distribution Manifolds (CDMs), cooling towers and end to end management software." According to the company, this integrated offering reduces energy and 0-day hardware acquisition costs. In what constitutes a critically important announcement, the company noted in its press release: "Supermicro recently deployed more than 100,000 GPUs with liquid cooling solution (DLC) for some of the largest AI factories ever built, as well as other CSPs." For the benefit of those who might not be aware, a single AI GPU rack can generate around 100kW of heat, which necessitates integrated cooling solutions. Incidentally, these cooling solutions can also allow for a more dense deployment of GPUs within a given data center space. Back in August, Hindenburg Research had leveled hard-hitting allegations against Super Micro Computer, asserting among other things that the company engages in distribution channel stuffing by pushing products to distributors based on artificially inflated demand forecasts, undertakes partial shipments to meet specific sales targets and inflate its total shipment count, re-hired top executives responsible for "widespread accounting violations" that had resulted in a $17.5 million settlement with the SEC, and paid nearly a billion dollars over the past three years to non-arm's-length suppliers such as Ablecom and Compuware. Bear in mind that Super Micro Computer's fiscal year ended on the 30th of June, 2024, and, as such, it was required to file an annual report by the 30th of August. But, in the aftermath of Hindenburg's hard-hitting report, the firm delayed this requisite filing to undertake a comprehensive internal review. The company now faces the specter of a probable fine by the SEC for continuing to delay the filing of its annual report. What's more, Super Micro Computer was recently informed by the Nasdaq Exchange that it was "not in compliance" with the exchange's listing rules due to its failure to file the report in a timely manner. Do note that Super Micro Computer has continued to assert throughout the past few weeks that it does not expect its ongoing internal review to result in "any material changes" in its fourth quarter or fiscal year 2024 financial results. Super Micro Computer is NVIDIA's third-largest customer. What's more, SMCI's biggest client is NVIDIA, and its second-biggest client is an entity that is backed by NVIDIA.

Watch These Super Micro Computer Price Levels After Stock Surges 16%

Shares in server maker Super Micro Computer (SMCI) soared 16% Monday after the company reported strong shipments of its GPUs, fueled by artificial intelligence (AI) demand. The company, whose stock recently underwent a 10-for-1 stock split, also unveiled a new range of direct liquid cooling products for servers that it said could help AI firms cut their energy costs. While Super Micro shares have ridden the AI boom to generate a year-to-date return of around 68% through Monday's close, they have lost more than half their value since setting a record high in March over concerns of deteriorating profit margins amid pricier next-generation AI chips and alleged accounting anomalies. Below, we take a closer look at the Super Micro Computer chart and use technical analysis to identify important price levels that investors will likely be watching. Super Micro Computer shares formed two troughs at similar levels last month, raising the possibility of a double bottom, a classic chart pattern that signals a potential bullish reversal. Importantly, as the second trough made a slightly lower low, the relative strength index (RSI) formed a comparatively higher low to create a bullish divergence that points to weakening selling momentum. More recently, today's jump occurred on the highest trading volume in more than a week, suggesting buying conviction behind the move. The first higher level to eye sits around $48, a location on the chart just above Monday's close where the shares may run into resistance near the early August swing low, the late August gap lower's opening price, and last month's high. A decisive breakout above this level could see bulls drive a rally to the $70 region, where the stock finds a confluence of potential resistance from the late February pullback low, troughs in April and May, and the 200-day moving average. This area also lines up with the closely watched 38.2% Fibonacci retracement level when applying the tool from the March high to September low. Ongoing buying may lead to a retest of the $97.50 area, where investors could look to exit positions near a multi-month trendline connecting a range of peaks on the chart between February and July. A failure to hold above the September low would invalidate the double bottom setup and could see the shares revisit lower major support around $35.50, where buy-and-hold investors may seek entry points near the August 2023 and January 2024 peaks, both of which marked prior record highs in the stock. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Super Micro shares surge as AI boom drives 100,000 quarterly GPU shipments

A boom in generative artificial intelligence technology has bumped up demand for the hardware required to process the large amounts of data genAI uses, helping Super Micro, which makes servers featuring leading AI chips including Nvidia's.Super Micro Computer said on Monday it is currently shipping more than 100,000 graphics processors per quarter and unveiled a new suite of liquid cooling products, sending the AI server maker's shares up about 14% following a weeks-long slump. A boom in generative artificial intelligence technology has bumped up demand for the hardware required to process the large amounts of data genAI uses, helping Super Micro, which makes servers featuring leading AI chips including Nvidia's. It "recently deployed more than 100,000 GPUs with liquid cooling solution (DLC) for some of the largest AI factories ever built," Super Micro said in a statement. Super Micro is on track to add more than $3 billion to its market value if gains hold. The company is acclaimed for its liquid cooling technology, which boasts greater power-saving than the air cooling techniques used in some data centers. Nvidia's shares were up more than 4%. Monday's rally provides a breath of relief to Super Micro's investors after the stock was slammed by mounting troubles, including Hindenburg Research disclosing a short position in the company in August. Short interest in Super Micro is just over 20% of its free float, worth about $3.59 billion, market research firm Ortex estimated. "If this is related to short sellers trying to buy back shares or not is too early to tell at this point, but at the current price, short sellers are making short-term losses and may choose to close their positions," Ortex said, noting this could have added to the stock's gains on the day. Super Micro's shares lost more than 9% of their value over the last two weeks, but are still up more than 66% this year, benefiting from Wall Street's booming, AI-linked "picks-and-shovels" trade. The company also launched a new range of DLC products, which would enable the "highest GPU per rack density", with up to 96 of Nvidia's B200 chips per rack. "Up to 40% energy savings for infrastructure and 80% space savings are a massive innovation for large, power-hungry AI deployments and could be a key differentiator to competitors," said Gadjo Sevilla, senior AI and tech analyst for eMarketer.

What's Going On With Super Micro Computer Stock On Monday? - Super Micro Computer (NASDAQ:SMCI)

Super Micro stock jumps after unveiling complete cooling system, deployed in major AI factories with over 100,000 GPUs. Monday, Super Micro Computer, Inc SMCI stock gained after it announced a complete liquid cooling solution that includes powerful Coolant Distribution Units (CDUs), cold plates, Coolant Distribution Manifolds (CDMs), cooling towers, and end-to-end management software. Supermicro said it recently deployed over 100,000 GPUs with liquid cooling solution (DLC) for some of the largest AI factories ever built, as well as other Cloud Service Providers (CSPs). Supermicro's ultra-dense server with dual top-bin CPUs and 8 Nvidia Corp NVDA HGX GPUs in just 4U with liquid cooling quadruples the computing density, allowing organizations to run larger training models with a smaller data center footprint. Also Read: Supermicro And Fujitsu Partner For AI-Powered Server: What's In Store? This complete solution reduces ongoing power costs, Day 0 hardware acquisition, and data center cooling infrastructure costs. However, Supermicro stock has been under pressure since the U.S. Department of Justice started probing the company following an August short report from Hindenburg Research. The short report highlighted allegations by former employee Bob Luong over the AI server company's inappropriate revenue recognition policies and the re-hiring of employees the company had terminated due to involvement with past accounting violations. Supermicro had inked a settlement with the SEC in 2020, paying $17.5 million without admitting or denying the accusations. Needham analyst Quinn Bolton flagged Supermicro, a first mover in rack-level liquid cooling solutions, with its liquid cooling as an opportunity for further market share expansion. Bolton noted that the stock has priced in most of the risk associated with the board's review of internal controls following the short report. Supermicro stock is up 61% in the last 12 months. Investors can gain exposure to the stock through Vanguard Growth ETF VUG and Invesco S&P 500 Equal Weight ETF RSP. Price Action: SMCI stock is up 13.80% at $46.94 at the last check on Monday. Also Read: Super Micro Unveils Next-Gen Servers Powered by Intel's Latest Xeon Chips Market News and Data brought to you by Benzinga APIs

Supermicro launches AI-optimized server platform By Investing.com

SAN JOSE, Calif. - Super Micro Computer, Inc. (NASDAQ: NASDAQ:SMCI), known for its IT solutions for AI, cloud, storage, and 5G/Edge, has announced a new high-density server platform designed to enhance AI inferencing at the network edge. The platform is tailored for large language models (LLM) and aims to address the demand for high-volume data inferencing with minimal latency in edge locations. The new Supermicro system, named SYS-322GB-NR, is a 3U server that supports up to 10 double-width GPUs and features two Intel (NASDAQ:INTC)® Xeon® 6900 series processors with P-cores and up to 20 PCIe 5.0 expansion slots. It can accommodate up to 6TB of RDIMM memory and up to 14 E1.S or 6 U.2 NVMe drives. The server's thermal design allows it to operate in conventional air-cooled environments, making it suitable for deployment in edge data centers. Charles Liang, president and CEO of Supermicro, stated that the system's optimized thermal design enables the delivery of performance in a high-density package, which can be crucial for customers needing powerful solutions for on-premises AI applications with minimal latency. The SYS-322GB-NR is also versatile, capable of processing data feeds from cameras and sensors in manufacturing settings without the need to transfer data to a remote location, thereby reducing networking requirements and improving response times. It is equally adept in control room environments where AI accelerator cards can be replaced with multi-display cards to support up to 64 independent displays. Supermicro showcased the SYS-322GB-NR at Mobile World Congress (MWC) Las Vegas, alongside other systems and AI solutions developed in partnership with NVIDIA (NASDAQ:NVDA), AMD (NASDAQ:AMD), and Intel. These solutions are designed to address the needs of Enterprise AI, Retail, Telco Edge, and Financial Services, and include a live AI RAN solution and a ruggedized IP65 Outdoor Edge system with a built-in AI Network (LON:NETW) Accelerator and Intel® Data Center GPU Flex (NASDAQ:FLEX) 170, suitable for private 5G networks and Edge AI applications. This announcement is based on a press release statement from Super Micro Computer, Inc. In other recent news, Super Micro Computer has reported significant developments in its operations and financial status. The company reached a milestone by shipping over 100,000 GPUs each quarter, driven by the demand for generative AI technology. In addition, Super Micro introduced a comprehensive liquid cooling solution for data centers, which has already been implemented in over 2,000 liquid-cooled racks since June 2024. Simultaneously, Super Micro has announced a ten-for-one forward stock split and amendments to its financial agreements. The company reported record annual revenues of $14.94 billion and fourth-quarter revenues of $5.31 billion. However, Super Micro is under investigation by the U.S. Department of Justice for alleged accounting manipulation. In terms of product offerings, Super Micro expanded its X14 server portfolio with the integration of new Intel Xeon 6900 Series Processors. The company also unveiled its high-density FlexTwin family of systems. On the analyst front, Loop Capital maintained its buy rating on Super Micro Computer shares, albeit with a reduced price target, while Needham initiated coverage on Super Micro with a buy rating, citing the company's potential for growth in AI infrastructure. Super Micro Computer's (NASDAQ: SMCI) recent announcement of its high-density server platform aligns well with the company's strong market position and growth trajectory. According to InvestingPro data, SMCI has demonstrated impressive revenue growth, with a 109.77% increase in the last twelve months as of Q4 2024. This growth is particularly noteworthy in the context of the company's new AI-focused offerings. The company's focus on AI and edge computing solutions appears to be paying off, as reflected in its financial performance. SMCI's P/E ratio of 21.84 suggests that investors are pricing in future growth expectations, likely driven by innovations like the SYS-322GB-NR server platform. InvestingPro Tips highlight that SMCI is a prominent player in the Technology Hardware, Storage & Peripherals industry, which is consistent with its position in the AI and edge computing markets. Additionally, analysts anticipate sales growth in the current year, which could be fueled by the demand for SMCI's new high-density server platform and other AI-related products. It's worth noting that SMCI has seen a significant return over the last week (17.73%) and the last month (23.53%), possibly reflecting positive market reception to its recent product announcements and strong financial performance. For investors seeking more comprehensive insights, InvestingPro offers 17 additional tips for SMCI, providing a deeper understanding of the company's financial health and market position.

Supermicro unveils H14 servers for AI data centers By Investing.com

SAN JOSE, Calif. - Supermicro, Inc. (NASDAQ: SMCI), known for its IT solutions in AI, Cloud, Storage, and 5G/Edge, has introduced its H14 series of servers and GPU-accelerated systems, featuring the new AMD (NASDAQ:AMD) EPYC™ 9005 Series processors and AMD Instinct™ MI325X GPUs. The H14 lineup, which includes diverse server models with air or liquid cooling options, is designed to meet the high-performance requirements of AI workloads in data centers. The company's latest H14 family incorporates the 5th Gen AMD EPYC processors, allowing up to 192 cores per CPU and supporting up to 500W TDP. Supermicro's new systems, including the Hyper and FlexTwin™ models, are engineered to handle these higher thermal demands. The H14 family also encompasses three systems optimized for AI training and inference workloads, supporting up to 10 GPUs, with two specifically designed for the AMD Instinct MI325X GPU. Supermicro's president and CEO, Charles Liang, highlighted the performance leap, stating that the H14 servers deliver 2.44 times faster SPECrate®2017_fp_base performance compared with the H11 systems using the second-generation EPYC 7002 Series CPUs. Liang emphasized the efficiency improvements, noting the potential to reduce the total data center footprint by at least two-thirds while enhancing AI processing capabilities. The H14 server range includes various models tailored to different applications, such as the Hyper, CloudDC, GrandTwin™, FlexTwin™, and multiple GPU systems, each designed to cater to specific workload requirements, from enterprise use to large-scale AI training. The new products are currently available for customer testing through Supermicro's JumpStart program. Additionally, Supermicro will showcase the H14 solutions at the AMD Advancing AI Day on Thursday at the San Francisco Moscone Center. The launch of the H14 server family is part of Supermicro's ongoing commitment to providing advanced IT solutions that are optimized for specific applications, with an emphasis on improving total cost of ownership and minimizing environmental impact. In other recent news, Super Micro Computer, Inc. has made significant strides in its operations and financial standing. The company has launched the SYS-322GB-NR, a high-density server platform optimized for AI inferencing at network edge locations. This comes alongside the company's announcement of shipping over 100,000 GPUs each quarter, driven by the demand for generative AI technology. Super Micro Computer has also introduced a comprehensive liquid cooling solution for data centers, which has been implemented in over 2,000 liquid-cooled racks since June 2024. Super Micro Computer has also reported a ten-for-one forward stock split and amendments to its financial agreements. The company reported record annual revenues of $14.94 billion and fourth-quarter revenues of $5.31 billion. However, it is noteworthy that the company is under investigation by the U.S. Department of Justice for alleged accounting manipulation. In terms of product offerings, Super Micro Computer has expanded its X14 server portfolio with the integration of new Intel (NASDAQ:INTC) Xeon 6900 Series Processors. The company also unveiled its high-density FlexTwin family of systems. On the analyst front, Loop Capital maintained its buy rating on Super Micro Computer shares, albeit with a reduced price target. Meanwhile, Needham initiated coverage on Super Micro with a buy rating, citing the company's potential for growth in AI infrastructure. These are the recent developments at Super Micro Computer, Inc. Supermicro's (NASDAQ: SMCI) recent launch of its H14 series servers aligns well with the company's strong market position and growth trajectory. According to InvestingPro data, Supermicro has demonstrated impressive revenue growth, with a 109.77% increase in the last twelve months as of Q4 2024. This growth is further emphasized by the quarterly revenue surge of 142.95% in Q4 2024, indicating strong demand for the company's high-performance computing solutions. The company's focus on AI-optimized systems is particularly timely, given its status as a prominent player in the Technology Hardware, Storage & Peripherals industry. An InvestingPro Tip highlights that analysts anticipate sales growth in the current year, which could be driven by the adoption of these new H14 servers and GPU-accelerated systems. Despite the recent product launch and strong revenue growth, Supermicro's stock has experienced volatility. The company's share price has seen a significant return of 13.81% over the last week and 14.58% over the last month, suggesting positive short-term momentum. However, it's worth noting that the stock has fallen by 47.45% over the last three months, indicating some market uncertainty. From a valuation perspective, Supermicro is trading at a P/E ratio of 21.54, which an InvestingPro Tip suggests is low relative to its near-term earnings growth potential. This could present an opportunity for investors who believe in the company's long-term prospects in the AI and high-performance computing markets. For those interested in a deeper analysis, InvestingPro offers 16 additional tips for Supermicro, providing a comprehensive view of the company's financial health and market position.