Super Micro Computer (SMCI.O) announced a significant boost in its stock price on Monday, reporting the shipment of over 100,000 graphics processors (GPUs) per quarter. This surge comes as the demand for hardware supporting generative artificial intelligence (AI) technologies continues to skyrocket, prompting a 14% rise in the company’s shares following a recent downturn.
The AI server manufacturer highlighted its deployment of more than 100,000 GPUs equipped with advanced liquid cooling solutions (DLC) for some of the largest AI facilities ever constructed. This technological edge has positioned Super Micro as a key player in providing servers that feature leading AI chips, including those from Nvidia (NVDA.O).
If this upward momentum persists, Super Micro is on track to add over $3 billion to its market capitalization. The company is particularly noted for its liquid cooling technology, which is more energy-efficient compared to traditional air cooling methods used in many data centers. Shares of Nvidia also saw an increase, rising more than 4%.
Monday’s rally offers a welcome reprieve for Super Micro’s investors, who have faced challenges in recent weeks, including scrutiny from Hindenburg Research, which disclosed a short position in the company in August. Current estimates from market research firm Ortex indicate that short interest in Super Micro is slightly above 20% of its free float, translating to a value of around $3.59 billion.
Ortex analysts suggested that the current price surge may be influencing short sellers to cover their positions, leading to potential short-term losses for those betting against the stock. As the situation unfolds, the ongoing interest in AI technology continues to shape market dynamics for Super Micro and its stakeholders.
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