What's Going On With Super Micro Computer Stock On Monday?

Monday, Super Micro Computer, Inc SMCI stock gained after it announced a complete liquid cooling solution that includes powerful Coolant Distribution Units (CDUs), cold plates, Coolant Distribution Manifolds (CDMs), cooling towers, and end-to-end management software.

Supermicro said it recently deployed over 100,000 GPUs with liquid cooling solution (DLC) for some of the largest AI factories ever built, as well as other Cloud Service Providers (CSPs).

Supermicro’s ultra-dense server with dual top-bin CPUs and 8 Nvidia Corp NVDA HGX GPUs in just 4U with liquid cooling quadruples the computing density, allowing organizations to run larger training models with a smaller data center footprint.

Also Read: Supermicro And Fujitsu Partner For AI-Powered Server: What’s In Store?

This complete solution reduces ongoing power costs, Day 0 hardware acquisition, and data center cooling infrastructure costs.

However, Supermicro stock has been under pressure since the U.S. Department of Justice started probing the company following an August short report from Hindenburg Research.

The short report highlighted allegations by former employee Bob Luong over the AI server company’s inappropriate revenue recognition policies and the re-hiring of employees the company had terminated due to involvement with past accounting violations.

Supermicro had inked a settlement with the SEC in 2020, paying $17.5 million without admitting or denying the accusations. 

Needham analyst Quinn Bolton flagged Supermicro, a first mover in rack-level liquid cooling solutions, with its liquid cooling as an opportunity for further market share expansion.

Bolton noted that the stock has priced in most of the risk associated with the board’s review of internal controls following the short report.

Supermicro stock is up 61% in the last 12 months. Investors can gain exposure to the stock through Vanguard Growth ETF VUG and Invesco S&P 500 Equal Weight ETF RSP.

Price Action: SMCI stock is up 13.80% at $46.94 at the last check on Monday.

Also Read:

• Super Micro Unveils Next-Gen Servers Powered by Intel’s Latest Xeon Chips