Super Micro Computer's Stock Rises Due to Strong AI Server Shipment Data

Super Micro's Shares Experience Significant Rally

Super Micro Computer's shares experienced a significant increase on Monday, marking the largest intra-day gain in several months. This surge followed the company's release of shipment data, which revealed a high demand for AI servers from their customers.

Challenges Faced by Super Micro

Despite facing a number of internal issues such as a delay in 10K filing, a Department of Justice investigation, and a short report from Hindenburg Research, Super Micro's AI server demand remained strong, with 100,000 GPUs shipped per quarter.

Super Micro's PR Statement

According to a statement from Super Micro, the company recently deployed over 100,000 GPUs with a liquid cooling solution (DLC) for some of the largest AI factories ever built. With each server requiring approximately 12kW of power for AI and HPC workloads, liquid cooling has proven to be a more efficient method to maintain the desired operating temperature for each GPU and CPU.

Analyst's Comment on Super Micro's Shipment Data

Woo Jin Ho, from Bloomberg Intellegence, commented on the shipment data. He stated that the company's 10K filing delay and DoJ probe could potentially overshadow any positive AI server demand fundamentals. He also mentioned that while the company's strength in rack-scale design engineering and short delivery lead times has helped secure key AI deals, customer and supplier concerns may rise due to the red flags raised on its financials.

Super Micro's Shares Reach Seven-Month High

Super Micro's shares reached a seven-month high at one point in the morning. However, by early afternoon, the shares had given up some of their gains, still marking the largest intra-day gain since mid-May. Despite this, shares have fallen 66% since peaking around $120 in mid-March.

Concerns Raised by Super Micro Executives

Super Micro executives' recent PR has raised questions about whether they are trying to orchestrate a squeeze, especially considering the ongoing DoJ investigation into the company.

Bottom Line

Super Micro Computer's shares have experienced a significant rally, despite the company facing a number of internal challenges. While the company's AI server demand remains robust, concerns have been raised about its financial transparency. What are your thoughts on this situation? Do you think Super Micro's shares will continue to rise, or will the company's internal challenges overshadow its success? Share your thoughts with your friends and consider signing up for the Daily Briefing, which is delivered every day at 6pm.