Reported 5 months ago
Shares of Super Micro Computer (NASDAQ: SMCI) surged by 11.3% in the morning following Nvidia's exceptional earnings report, with Nvidia's success in AI accelerator chip demand translating to strong sales for custom AI-computing computers, boosting investor confidence in Supermicro. However, the enthusiasm waned later in the day, with the stock up 2.1% by 1 p.m. ET, despite a 438% 52-week gain. Nvidia's impressive sales growth, particularly in the data center segment, bodes well for Supermicro, as it indicates continued demand for integrated computer systems needed for AI training, with Supermicro offering a more modestly priced alternative to Nvidia in the AI market.
Source: YAHOO