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Supermicro unveils AI-optimized storage system

Published 10/15/2024, 12:41 PM
SMCI
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SAN JOSE, Calif. - Supermicro, Inc. (NASDAQ: SMCI), known for its IT solutions for AI and cloud services, announced the launch of a new storage system optimized for artificial intelligence (AI) workloads. The system incorporates NVIDIA (NASDAQ:NVDA) BlueField-3 data processing units (DPUs) to enhance performance for AI training, inference, and high-performance computing (HPC) tasks.

The new Just a Bunch of Flash (JBOF) system features a 2U (OTC:TWOUQ) form factor and can house up to four NVIDIA BlueField-3 DPUs. These units support 400Gb Ethernet or InfiniBand networking and provide hardware acceleration for demanding storage and networking workloads, including encryption, compression, and erasure coding. The dual port JBOF architecture is designed for high availability, supporting both scale-up and scale-out storage applications.

Supermicro's CEO, Charles Liang, highlighted the system's capacity to support 24 or 36 SSDs, enabling up to 1.105PB of raw storage using 30.71TB SSDs. The balanced I/O design aims to maximize the 400 Gb/s BlueField-3 line-rate and the bandwidth of Gen 5 SSDs.

In partnership with NVIDIA, Supermicro is building a JBOF ecosystem with companies like Hammerspace and Cloudian to run storage infrastructure software natively on the NVIDIA BlueField-3 DPU. SSDs from Micron (NASDAQ:MU) and KIOXIA have been qualified for use with the system, offering a variety of capacities and port capabilities.

Ashish Nadkarni from IDC praised the solution for its integrated approach and power efficiency compared to CPU-based storage servers. The direct data path provided by the JBOF and DPU architecture is expected to reduce read latency.

Supermicro, in collaboration with NVIDIA, will present the new JBOF solution at the OCP Global conference in San Jose on Wednesday, October 16. They will host a session titled "High Performance Data Center Storage using DPUs" for attendees interested in learning more about the technology.

This announcement is based on a press release statement from Supermicro and provides an insight into the company's efforts to cater to the growing demand for AI and HPC optimized storage solutions.

In other recent news, Super Micro Computer (NASDAQ:SMCI), Inc. has introduced its H14 series of servers and GPU-accelerated systems, designed to meet the high-performance requirements of AI workloads in data centers. The H14 lineup features the new AMD (NASDAQ:AMD) EPYC™ 9005 Series processors and AMD Instinct™ MI325X GPUs. The company has also launched the SYS-322GB-NR, a high-density server platform optimized for AI inferencing at network edge locations. Super Micro Computer has reported record annual revenues of $14.94 billion and fourth-quarter revenues of $5.31 billion. However, the company is under investigation by the U.S. Department of Justice for alleged accounting manipulation. Analyst firm Loop Capital maintained its buy rating on Super Micro Computer shares, albeit with a reduced price target. Meanwhile, Needham initiated coverage on Super Micro with a buy rating, citing the company's potential for growth in AI infrastructure. These are recent developments at Super Micro Computer, Inc.

InvestingPro Insights

Supermicro's latest product launch aligns with its strong market position and growth trajectory. According to InvestingPro data, the company has experienced remarkable revenue growth, with a 109.77% increase over the last twelve months as of Q4 2024. This impressive growth is further emphasized by the quarterly revenue growth of 142.95% in Q4 2024, indicating strong demand for Supermicro's AI and cloud-focused solutions.

InvestingPro Tips highlight that Supermicro is a prominent player in the Technology Hardware, Storage & Peripherals industry, which is consistent with its focus on advanced storage systems like the new JBOF solution. The company's innovative approach to AI-optimized hardware is likely contributing to its financial performance, as analysts anticipate continued sales growth in the current year.

Despite the recent product announcement, it's worth noting that Supermicro's stock price has fallen significantly over the last three months, with a -47.21% total return. However, this could present an opportunity for investors, as the company is trading at a low P/E ratio of 21.59 relative to its near-term earnings growth potential.

For those interested in a deeper analysis, InvestingPro offers 13 additional tips that could provide valuable insights into Supermicro's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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