Super Micro Computer Ships 100,000 GPUs Quarterly

(Reuters) – Super Micro Computer announced on Monday that it is currently shipping over 100,000 graphics processors (GPUs) per quarter. The company also unveiled a new range of liquid cooling products, which led to a 14% jump in its shares following a period of decline.

Increased Demand for AI Hardware

The growing demand for hardware to support generative artificial intelligence (GenAI) technologies is boosting Super Micro’s production, as they manufacture servers that utilize cutting-edge AI chips, including those from Nvidia (NASDAQ:NVDA).

“Recently deployed, over 100,000 GPUs with a liquid cooling solution (DLC) for some of the largest AI factories ever built,” stated Super Micro.

The company anticipates an increase of over $3 billion in market value if these gains are sustained.

Liquid Cooling Technology Advantages

Super Micro is renowned for its liquid cooling technology, which offers better energy efficiency than traditional air cooling methods commonly used in data centers. Nvidia’s shares rose by more than 4% as well.

Stock Market Performance

The recent stock rally brings relief to investors after Super Micro’s shares had fallen by over 9% in the last two weeks, primarily due to increased scrutiny from Hindenburg Research disclosing a short position in August. Short interest in Super Micro is estimated at just over 20% of its free float, valued around $3.59 billion, according to market research firm Ortex.

Ortex noted, “At this point, it’s too early to tell if this is related to short sellers trying to buy back shares, but current losses might prompt them to close their positions, contributing to today’s stock gains.”

Despite the recent downturn, Super Micro’s stock is still up more than 66% this year, supported by Wall Street’s growing interest in AI-linked investments.

New Product Launches

The company has also introduced a new series of DLC products designed for optimal GPU density per rack, accommodating up to 96 of Nvidia’s B200 chips. Gadjo Sevilla, an AI and tech analyst at eMarketer, stated, “The potential for up to 40% energy savings and 80% space savings represents a significant innovation for large AI deployments and may set Super Micro apart from competitors.”