In a significant turnaround, AI server manufacturer Super Micro Computer has announced that it is now shipping over 100,000 graphics processing units (GPUs) per quarter, sparking a 14% surge in its stock price. This remarkable upswing comes on the heels of a weeks-long slump, buoyed by the growing demand for high-performance hardware to support the rapid advancement of generative artificial intelligence (genAI) technology.
Super Micro’s innovative liquid cooling solutions, which boast substantial power savings compared to traditional air cooling methods, have been instrumental in driving this growth. The company has recently deployed over 100,000 GPUs with liquid cooling technology for some of the largest AI facilities ever built, solidifying its position as a leader in the AI server market.
The company’s close partnership with Nvidia, a pioneer in AI chip technology, has also contributed to its success. Super Micro is often among the first to receive Nvidia’s coveted AI chips, giving it a competitive edge in the market. Nvidia’s shares also saw a notable 3% increase on the day.
This sudden rally brings welcome relief to Super Micro’s investors, who had been grappling with mounting concerns, including a short position disclosed by Hindenburg Research last month. With short interest in the company hovering around 20% of its free float, worth approximately $3.59 billion, the recent surge may have prompted short sellers to reassess their positions, leading to additional gains.
Super Micro’s shares, which had lost over 9% of their value in the past two weeks, are still up an impressive 66% this year, riding the coattails of the booming AI-linked trade. The company’s new range of DLC products, designed to support the “highest GPU per rack density,” is expected to further bolster its market share, particularly with the upcoming release of Nvidia’s Blackwell GPUs later this year.
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