Key Points
- Super Micro is shipping over 100,000 GPUs per quarter, leading to a 14% share rise.
- The company unveiled new liquid cooling products, offering up to 40% energy savings and 80% space savings.
- After recent challenges, short sellers closing positions may have contributed to the stock’s rally.
- The new cooling products could provide Super Micro with a competitive edge in the AI server market.
Super Micro Computer (SMCI.O), a leading AI server manufacturer, announced on Monday that it is shipping over 100,000 graphics processors (GPUs) per quarter, propelling its shares by about 14% following a recent decline. The surge comes as Super Micro unveils a new suite of liquid cooling products designed to enhance energy efficiency in AI data centers, further solidifying its position in the booming generative AI market.
The growing demand for hardware capable of processing vast amounts of data used by generative AI (genAI) has significantly benefited Super Micro, which produces servers equipped with cutting-edge AI chips, including those from Nvidia (NVDA.O). The company “recently deployed more than 100,000 GPUs with liquid cooling solution (DLC) for some of the largest AI factories ever built.”
The launch of the new liquid cooling products is pivotal for Super Micro, as these systems offer substantial power savings compared to traditional air cooling methods commonly used in data centers. The company highlighted that its liquid cooling technology could provide “up to 40% energy savings for infrastructure and 80% space savings,” making it an ideal solution for large-scale AI deployments where power consumption and space constraints are critical factors.
The company’s stock has faced headwinds in recent weeks, with the price suffering from various issues, including a short position disclosed by Hindenburg Research in August. Short interest in Super Micro remains high, at just over 20% of its free float, with an estimated market value of $3.59 billion, according to data from market research firm Ortex. The recent rally in Super Micro’s shares could partially be attributed to short sellers closing their positions to limit further losses. Ortex noted, “At the current price, short sellers are making short-term losses and may choose to close their positions,” which may have contributed to Monday’s gains.
In addition to the liquid cooling products, Super Micro introduced a range of DLC systems capable of delivering the “highest GPU per rack density,” with up to 96 Nvidia B200 chips per rack. This innovation could serve as a key differentiator for Super Micro in the highly competitive AI server market.
Gadjo Sevilla, senior AI and technology analyst for eMarketer commented, “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.”
