(Reuters) – Tremendous Micro Laptop (SMCI) mentioned on Monday it’s presently delivery greater than 100,000 graphics processors per quarter and unveiled a brand new suite of liquid cooling merchandise, sending the AI server maker’s shares up about 14% following a weeks-long stoop.
A increase in generative synthetic intelligence expertise has bumped up demand for the {hardware} required to course of the massive quantities of information genAI makes use of, serving to Tremendous Micro, which makes servers that includes main AI chips together with Nvidia’s (NVDA).
It “lately deployed greater than 100,000 GPUs with liquid cooling resolution (DLC) for a few of the largest AI factories ever constructed,” Tremendous Micro mentioned in a press release.
The corporate is acclaimed for its liquid cooling expertise, which boasts higher power-saving than the air cooling methods utilized in some information facilities. It’s also usually among the many first to obtain Nvidia’s coveted AI chips.
Nvidia’s shares had been up greater than 3%.
Monday’s rally offers a breath of reduction to Tremendous Micro’s traders after the inventory was slammed by mounting troubles, together with Hindenburg Analysis disclosing a brief place within the firm final month.
Brief curiosity in Tremendous Micro is simply over 20% of its free float, price about $3.59 billion, market analysis agency Ortex estimated.
“If that is associated to quick sellers attempting to purchase again shares or not is simply too early to inform at this level, however on the present worth, quick sellers are making short-term losses and will select to shut their positions,” Ortex mentioned, noting this might have added to the inventory’s beneficial properties on the day.
Tremendous Micro’s shares misplaced greater than 9% of their worth during the last two weeks, however are nonetheless up greater than 66% this 12 months, benefiting from a rally in AI-linked shares amid Wall Avenue’s booming “picks-and-shovels” commerce.
The corporate additionally launched a brand new vary of DLC merchandise, which might allow the “highest GPU per rack density”, with as much as 96 of Nvidia’s Blackwell B200 chips per rack.
“Offering demonstrable options will assist the corporate achieve market share, particularly as soon as the newer Nvidia Blackwell GPUs come to market later this 12 months,” mentioned Gadjo Sevilla, senior AI and tech analyst for eMarketer.
(Reporting by Arsheeya Bajwa, Medha Singh and Deborah Sophia in Bengaluru; Enhancing by Pooja Desai)
