📈 Super Micro shares: the AI boom opens up new possibilities, but faces challenges too! 🤖💡
Super Micro Computer $SMCI is currently booming, thanks to the rapidly growing interest in artificial intelligence technologies. The company recently announced that it is shipping more than 100,000 GPUs per quarter (GPUS), which is essential for processing the vast amounts of data that generative AI uses. 🧠💻 As a result, the company's stock rose more than 18 %, but today the stock is back up over 7 % have been writing them off.
Strong demand for AI for AI hardware is fueled by the company's innovation Super Micro. Their servers are equipped with high-end chips from Nvidia, that enable the largest AI factories in the world. Plus, their liquid cooling technology (DLC) offers much greater energy savings than traditional air cooling, further strengthening the position of Super Micro in the market with AI server market. 🌊💧
The company mainly uses chips from Nvidia🚀🔧 This allows them to offer extremely high density solutions GPUS per rack - up to 96 Nvidia Blackwell B200 GPUs per rack. This new product guarantees significantly higher performance and is poised to gain even more market share, especially with the expected launch of newer Nvidia chips later this year. Super Micro has, however, launched a new line of AI server "racks" also powered by processors Intel Xeon.
However, the company has also been plagued by serious problems, with indictments for falsifying financial reports and non-compliance with US export restrictions . On 27 August 2024 , Hindenburg Research published a report on Super Micro Computer in which "found apparent accounting deficiencies, evidence of undisclosed related party transactions, sanctions and export control violations, and customer problems."
What is your opinion of Super Micro?
I don't really like this company, but looking at the comments, I agree that the $ARM one is pretty interesting.
It's not for me and I'd rather look for other and better companies. Overall the stock is not stable at all and I don't like the way the company operates either.
It's probably not a bad company, but I don't like it much. I find $ARM much more interesting. That's a much more stable and, in my opinion, better company.
Well, I wouldn't want that stock in my portfolio. The price is very volatile and you can see it in the way the price moves, one day the stock goes up significantly and the next day the stock goes down significantly.
The problems are pretty big and the stock is moving back and forth. There are definitely better opportunities to be found at the moment.