SAN JOSE, Calif. - Supermicro, Inc. (NASDAQ: SMCI) has announced the sampling of its liquid-cooled solutions leveraging the NVIDIA (NASDAQ:NVDA) Blackwell platform, signaling a shift towards more sustainable and energy-efficient AI data centers. These solutions, which include the Supermicro X14 and H14 systems, are designed for the NVIDIA HGX B200 8-GPU system and are now ready for full-scale production slated for late Q4.
Supermicro has reported shipping over 2000 liquid-cooled racks since June 2024, indicating a growing adoption of their technology in AI infrastructure projects. The company's end-to-end liquid-cooling solution integrates with the NVIDIA GB200 NVL72 platform, offering exascale computing capabilities within a single rack. This setup includes 72 NVIDIA Blackwell GPUs and 32 NVIDIA Grace CPUs, connected through NVIDIA's fifth-generation NVLink network.
The recent developments also feature advanced in-rack or in-row coolant distribution units (CDUs) and custom cold plates designed for a 1U form factor, housing two NVIDIA GB200 Grace Blackwell Superchips. Supermicro's 10U air-cooled systems support up to four installations in a 48U rack, maintaining the same density as previous generations while delivering up to 15 times the inference and three times the training performance.
Supermicro's SuperCloud Composer software offers a management platform for monitoring the liquid-cooled systems and racks, including vital information on the CDUs and cooling towers. The company's comprehensive liquid-cooling ecosystem is designed in-house and covers various components, from cold plates to cooling towers, aimed at enhancing efficiency and reducing total cost of ownership (TCO) and environmental impact.
The company's initiative is part of a broader trend towards sustainable AI computing, with Supermicro providing networking innovations such as NVIDIA BlueField®-3 SuperNICs and NVIDIA ConnectX®-7 at 400Gb/s, and NVIDIA ConnectX®-8, Spectrum™-4, and NVIDIA Quantum-3 to enable 800Gb/s networking for the NVIDIA Blackwell platform.
This announcement was made in conjunction with Supermicro's participation in the 2024 OCP Global Summit, where they showcased their new X14 4U liquid-cooled system among other products. The information is based on a press release statement from Super Micro Computer (NASDAQ:SMCI), Inc.
In other recent news, Super Micro Computer, Inc. has reported record annual revenues of $14.94 billion and fourth-quarter revenues of $5.31 billion. However, the company is currently under investigation by the U.S. Department of Justice for alleged accounting manipulation. On the product front, Supermicro has launched a new storage system optimized for AI workloads, incorporating NVIDIA BlueField-3 data processing units. Furthermore, the company has introduced its H14 series of servers and GPU-accelerated systems, designed to meet the high-performance requirements of AI workloads in data centers. A new high-density server platform, the SYS-322GB-NR, optimized for AI inferencing at network edge locations, has also been unveiled. Analyst firm Loop Capital maintained its buy rating on Super Micro Computer shares, albeit with a reduced price target, while Needham initiated coverage with a buy rating, citing the company's potential for growth in AI infrastructure. These are the recent developments at Super Micro Computer, Inc.
InvestingPro Insights
Supermicro's (NASDAQ: SMCI) recent announcement of liquid-cooled solutions for AI data centers aligns with its strong market position and growth trajectory. According to InvestingPro data, the company's revenue growth has been impressive, with a 109.77% increase over the last twelve months as of Q4 2024. This robust growth is further supported by an InvestingPro Tip indicating that analysts anticipate continued sales growth in the current year.
The company's focus on innovative, energy-efficient solutions like liquid cooling for AI infrastructure appears to be paying off. Supermicro's P/E ratio of 21.59 suggests that investors are pricing in future growth potential, while the PEG ratio of 0.3 indicates that the stock may be undervalued relative to its growth prospects. This is reinforced by another InvestingPro Tip stating that Supermicro is trading at a low P/E ratio relative to its near-term earnings growth.
Despite a recent price decline, with the stock falling 47.21% over the last three months, Supermicro's fundamentals remain strong. The company's operating income margin of 8.47% and return on assets of 17.74% demonstrate its operational efficiency. Additionally, an InvestingPro Tip notes that Supermicro operates with a moderate level of debt, which could provide financial flexibility as it continues to invest in cutting-edge technologies.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Supermicro, providing a deeper understanding of the company's financial health and market position.
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