(Reuters) – Super Micro Computer (SMCI) said on Monday it is currently shipping more than 100,000 graphics processors per quarter and unveiled a new line of liquid cooling products, sending the AI server maker’s shares up about 14% after a weeks-long slump.
A boom in generative artificial intelligence technology has increased demand for the hardware needed to process the large amounts of data that genAI uses, benefiting Super Micro, which makes servers with leading AI chips, including those from Nvidia (NVDA ).
It “recently deployed more than 100,000 liquid cooling (DLC) GPUs to some of the largest AI factories ever built,” Super Micro said in a statement.
The company is known for its liquid cooling technology, which delivers greater energy savings than the air cooling techniques used in some data centers. It is also typically one of the first to receive Nvidia’s coveted AI chips.
Nvidia shares rose more than 3%.
Monday’s rally provides relief for Super Micro’s investors after the stock was hit by mounting problems, including Hindenburg Research disclosing a short position in the company last month.
The short stake in Super Micro amounts to just over 20% of the free float, worth about $3.59 billion, market research firm Ortex estimates.
“Whether this is related to short sellers trying to buy back shares is too early to say at this point, but at current prices, short sellers are incurring short-term losses and may choose to close their positions,” Ortex said . noting that this could have contributed to the stock’s gains on the day.
Shares of Super Micro lost more than 9% of their value in the past two weeks but are still up more than 66% this year, benefiting from a rally in AI-linked stocks amid the booming picks-and-shovels ‘-trading on Wall Street.
The company also launched a new range of DLC products, which would enable the “highest GPU per rack density”, with up to 96 Nvidia’s Blackwell B200 chips per rack.
“Offering demonstrable solutions will help the company gain market share, especially when the newer Nvidia Blackwell GPUs hit the market later this year,” said Gadjo Sevilla, senior AI and tech analyst for eMarketer.
(Reporting by Arsheeya Bajwa, Medha Singh and Deborah Sophia in Bengaluru; Editing by Pooja Desai)
