Chip stocks saw a substantial upswing on Monday, energized by Super Micro Computer’s announcement regarding their GPU shipments. The company revealed that it is now delivering over 100,000 GPUs each quarter, which has positively influenced the stock prices of both Super Micro and its major partner, Nvidia.
Nvidia’s stock experienced a notable jump of 4%, reaching approximately $130 per share, its peak since late August. Meanwhile, Super Micro Computer’s shares surged by as much as 18% during trading. This significant boost in share value reflects investor confidence and suggests a robust demand for Nvidia’s graphics processing units (GPUs).
Super Micro Computer’s press release emphasized its advanced liquid-cooling technologies designed for AI-heavy data centers, hinting at their plans to support the increasing needs of AI applications. The company, recognized as a key player in the GPU market, highlighted that they have deployed more than 100,000 GPUs with their new cooling solutions for some of the largest AI facilities ever constructed.
Nvidia’s relationship with Super Micro is critical; as the latter accounts for approximately 9% of Nvidia’s revenue while conversely, Nvidia products encompass 70% of Super Micro’s cost of goods sold. This intricate financial link underscores the importance of ongoing GPU demand and positions both companies favorably in the current tech landscape.
The news follows earlier comments from Nvidia CEO Jensen Huang, who recently shared insights into the “insane” demand for their upcoming AI-capable chips, known as Blackwell. “Blackwell is in full production, and the interest is overwhelming,” he stated, signaling a commitment to meeting the skyrocketing demand from their clients. Huang’s remarks are a strong indication that the tech industry is gearing up for a shift toward more advanced AI capabilities, further impacting Nvidia and Super Micro’s financial health.
On Monday alone, Nvidia saw its market cap increase by approximately $117 billion, while Super Micro Computer added around $4 billion. The ripple effects of these announcements emphasize the optimistic outlook for GPU-related technologies and the companies that produce them.
In the ever-evolving tech space, the ability to meet demand with innovative solutions will be pivotal for both Nvidia and Super Micro as they continue to solidify their positions as industry leaders. This uptick in stock prices not only reflects strengths in operational capacities but also sets a promising tone for future growth opportunities within the AI sector.