Super Micro Computer on Wednesday introduced liquid-cooled AI data center systems running the latest Nvidia chips that are quick to deploy and can save on electricity usage. SMCI stock rose on the news.
The San Jose, Calif.-based company, better known as Supermicro, announced its "AI SuperClusters" at the Computex trade show in Taiwan.
In a keynote speech, Supermicro Chief Executive Charles Liang said his firm's new data center systems offer advantages over rival offerings in return on investment and AI workloads. The systems are optimized for the Nvidia AI Enterprise software platform and run Nvidia's HGX B100, B200 and GB200 Grace Blackwell Superchip.
"Supermicro continues to lead the industry in creating and deploying AI solutions with rack-scale liquid-cooling," Liang said. "From cold plates to CDUs (coolant distribution units) to cooling towers, our rack-scale total liquid cooling solutions can reduce ongoing data center power usage by up to 40%."
SMCI Stock Rises On Computex News
On the stock market today, SMCI stock rose 4% to close at 802.52.
But SMCI stock has struggled for the past two months. In a negative sign, it has been trading mostly under its 50-day moving average line since mid-April.
Barclays analyst George Wang reiterated his overweight rating on SMCI stock with a price target of 1,000 on Wednesday.
"We think that Supermicro is gaining share with its rack-scale DLC (direct liquid cooling) production due to fast time to market," Wang said in a client note. "Next-gen AI solutions require liquid cooling."
The Supermicro keynote at Computex was the latest in a series of high-profile presentations at the show. Earlier this week, Computex featured keynote speeches from the chief executives of AMD, Arm Holdings, Intel, Nvidia and Qualcomm.
Computex News: Data Center Chips
At Computex, Nvidia CEO Jensen Huang reiterated that his company is now on a one-year cadence for new graphics processing units for AI data centers. The company previously launched new chips about every two years.
Nvidia will release its Blackwell Ultra chip in 2025 and next-generation Rubin chip platform in 2026. Plus, customers can expect annual versions of its connectivity and switching products.
AMD CEO Lisa Su updated the company's processor roadmap for notebook and desktop PCs, servers and AI accelerators. She highlighted AMD's third-generation Ryzen processor for AI PCs.
Plus, she announced that AMD is moving to an annual cadence for its Instinct AI accelerators. After the current MI300, it will deliver the MI325X later this year, MI350 in 2025 and MI400 in 2026.
Intel CEO Pat Gelsinger revealed pricing for Intel's Gaudi 2 and Gaudi 3 AI accelerators. The company will sell those data center products at a significant discount to Nvidia's current H100 graphics processing unit, he said.
Intel also launched its latest data center processor, Xeon 6, and introduced a new AI PC processor code-named Lunar Lake.
Computex News: Mobile Devices
Qualcomm CEO Cristiano Amon discussed the advantages of Qualcomm's Snapdragon X Elite and Snapdragon X Plus processors for AI notebook PCs. Qualcomm's Snapdragon is based on Arm chip designs.
The initial wave of over 20 Microsoft Copilot+ PCs powered by Qualcomm's new chips are available for preorder now and can be purchased from major retailers starting June 18.
Arm CEO Rene Haas said he expects that more than 100 billion Arm devices will be ready for AI by the end of 2025. That includes chips in everything from cloud data centers to edge devices like smartphones and PCs, he said. Haas emphasized the power efficiency of Arm-based processors.
SMCI Stock Ranks No. 1 In Group
Supermicro ranks first in IBD's Computer Hardware and Peripherals industry group, according to IBD Stock Checkup. SMCI stock has a best-possible IBD Composite Rating of 99.
Further, SMCI stock is on two IBD stock lists: Big Cap 20 and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
