LITTLETON, Mass. - JetCool, a company specializing in liquid cooling technology for data centers, has partnered with global manufacturing firm Flex (NASDAQ: NASDAQ:FLEX) to develop server solutions aimed at supporting the intensive demands of AI servers and high-density computing. The collaboration focuses on rack-level solutions, including a new line of liquid cooling-ready servers that comply with Open Compute Project (OCP) specifications.
The newly designed servers incorporate JetCool's patented microconvective cooling technology, which utilizes precision jets to cool processor hot spots effectively. This technology is vital in managing the heat generated by high-performance AI and compute workloads, thus maintaining optimal performance and reliability. The servers also offer a versatile platform for hyperscalers to create customized AI chip architectures and server configurations.
In addition, JetCool is set to launch a 6U in-rack Coolant Distribution Unit (CDU), capable of cooling 300kW and scalable up to 2.1MW at a row level. A demonstration of JetCool’s fully-sealed SmartPlate cold plate, which cools superchips exceeding 3kW, is scheduled at the 2024 OCP Global Summit. This demonstration is expected to highlight the potential for single-phase direct-to-chip liquid cooling for high-performance applications using sustainable, non-toxic fluids.
Flex's president of Communications, Enterprise and Cloud, Rob Campbell, emphasized the importance of advanced cooling systems for AI-enabled applications and the increasing power densities in racks. He noted that JetCool’s technology enhances the deployment of single-phase, direct-to-chip liquid cooling systems, which are essential to meet the growing power requirements of AI servers. Flex's expertise and global manufacturing capabilities are said to facilitate the scalability of these solutions.
Dr. Bernie Malouin, CEO of JetCool, remarked on the critical need for advanced cooling solutions as AI and other high-density workloads challenge traditional cooling methods. The partnership with Flex is intended to merge JetCool’s innovative liquid cooling solutions with Flex's manufacturing prowess, aiming to deliver high-performance, efficient servers for AI at scale.
The partnership promises to offer a comprehensive rack-level solution for AI-enabled applications, with integrated cooling and server technology designed to support a wide range of AI workloads and high-performance computing. Interested parties can view JetCool's portfolio at the Flex booth A11 and JetCool booth A21 during the OCP Global Summit from October 15-17, 2024, in San Jose, CA.
This news report is based on a press release statement from JetCool.
In other recent news, Flex Ltd. reported strong Q1 earnings for fiscal year 2025, with net sales of $6.3 billion and a GAAP operating income of $233 million. The company also announced strategic acquisitions of FreeFlow and Ojjo, expected to enhance product lifecycle services and promote sustainability. Analysts at Goldman Sachs maintained their Buy rating on Flex Ltd., with a steady price target of $39.00. Similarly, Craig-Hallum upgraded the company's stock from Hold to Buy. JPMorgan revised its outlook, reducing the price target to $39.00 while maintaining an Overweight rating due to challenges in the automotive and industrial sectors. Flex Ltd. also disclosed the approval of significant supplemental equity awards for two of its top executives, aimed at promoting long-term retention and incentivizing superior shareholder returns. Furthermore, Flex Ltd.'s shareholders approved a share repurchase plan with a maximum expenditure of $1.7 billion, demonstrating the company's commitment to providing returns to its shareholders. These recent developments highlight the strategic moves and financial performance of Flex Ltd.
InvestingPro Insights
As Flex (NASDAQ: FLEX) partners with JetCool to develop advanced server solutions for AI and high-density computing, investors may find value in examining the company's financial health and market position. According to InvestingPro data, Flex boasts a market capitalization of $13.94 billion, reflecting its significant presence in the Electronic Equipment, Instruments & Components industry.
Flex's P/E ratio of 15.52 suggests that the stock may be reasonably valued relative to its earnings, particularly when considering the company's growth prospects in the AI server market. This is further supported by an InvestingPro Tip indicating that Flex is trading at a low P/E ratio relative to its near-term earnings growth, which could be attractive to value-oriented investors.
The company's financial performance has been robust, with a strong return of 87.3% over the past year and trading near its 52-week high. This positive momentum aligns well with Flex's strategic move into the high-growth AI server cooling solutions market.
An additional InvestingPro Tip highlights that management has been aggressively buying back shares, which often signals confidence in the company's future prospects and can potentially increase shareholder value. This action may be particularly relevant as Flex expands its presence in the AI infrastructure space through partnerships like the one with JetCool.
For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips for Flex, providing a deeper understanding of the company's financial position and market outlook.
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