Tech Firm Sees Stock Soar After Revealing AI-Related Sales Boom
Shares of Super Micro Computer surged 15% after the company announced it’s shipping over 100,000 graphics processing units (GPUs) per quarter, primarily used for artificial intelligence (AI) applications. This significant sales volume could translate to billions of dollars in revenue, considering the average price of a GPU is around $30,000.
As a leading beneficiary of the AI boom, Super Micro specializes in manufacturing computers used as servers for data storage, websites, AI training models, and more. The company recently unveiled a new cooling product designed to reduce hardware costs and cooling infrastructure expenses for data centers. This innovation will enable servers to operate efficiently, even when running constantly.
Super Micro has also successfully deployed over 100,000 GPUs with liquid cooling solutions for some of the largest AI facilities and cloud service providers. Despite this positive news, the company is still lagging behind in reporting its annual financial results, which were initially expected in August.
Investors have been cautious, given the company’s recent struggles. Super Micro’s stock has plummeted over 50% since its peak in March, with a 12% decline on September 26 following reports of a Department of Justice probe into the company’s accounting practices. However, Monday’s announcement has brought some much-needed optimism to the company’s prospects.
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