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Nvidia and Super Micro Computer shares soared on Monday.
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Shares rose after an update from Super Micro said the company is shipping 100,000 GPS units per quarter.
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The market valuations of Nvidia and Super Micro Computer rose by $117 billion and $4 billion, respectively, on Monday.
Nvidia weathered the broader market decline on Monday, rising sharply after Super Micro Computer said it was shipping more than 100,000 GPUs per quarter.
Nvidia shares rose 4% to reach around $130 per share, representing the highest level since late August. Meanwhile, shares of Super Micro Computer rose as much as 18%.
In a press release touting its new liquid cooling solutions for heat-intensive AI data centers, Super Micro Computer says it is “currently shipping more than 100,000 GPUs per quarter.”
“Supermicro recently deployed more than 100,000 liquid-cooled GPUs for some of the largest AI factories ever built,” the company said in the press release.
According to Bloomberg data, Super Micro Computer is Nvidia’s third largest customer, accounting for about 9% of total revenue. On the other hand, approximately 70% of Super Micro Computer’s cost of goods sold is for Nvidia products.
Investors seemed to view Super Micro Computer’s update as a signal that demand for Nvidia’s GPU chips remains strong.
The update follows comments from Nvidia CEO Jensen Huang last week, who told CNBC that the company is experiencing “insane” demand for its next version of AI-enabled chips.
“Blackwell is in full production, Blackwell is progressing as planned,” Huang said. “Everyone wants to have the most and everyone wants to be first.”
Nvidia is currently shipping its next-generation Blackwell GPUs, which Super Micro Computer alluded to in a description of its new liquid cooling product.
“Specifically designed CDMs to enable the highest GPU per rack density with up to 96 Nvidia B200 GPUs per rack,” according to Super Micro Computer.
Monday’s gains added about $117 billion and $4 billion to the market valuations of Nvidia and Super Micro Computer, respectively, according to data from YCharts.
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