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Supermicro unveils high-density FlexTwin servers for HPC

Published 09/19/2024, 09:13 AM
SMCI
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SAN JOSE, Calif. - Supermicro, Inc. (NASDAQ: SMCI), known for its IT solutions for AI, HPC, and other high-demand computing tasks, has announced the release of its FlexTwin family of systems. This new line aims to meet the requirements of complex computing environments in scientific research, financial services, and other demanding HPC (High-Performance Computing) workloads.


The FlexTwin systems boast a design that can accommodate up to 96 dual processor compute nodes in a 48U rack, setting a new standard for performance density in rack-scale deployments. The architecture supports the latest high-frequency CPUs, capable of up to 500W each, with Direct Liquid Cooling (DLC) technology to achieve higher compute densities than traditional air-cooled data centers.


Supermicro's president and CEO, Charles Liang, emphasized the one-stop solution approach, including servers, racks, and cooling components, which are designed to accelerate deployment time and improve infrastructure quality and reliability. The company's liquid cooling solution is touted to remove up to 90% of server-generated heat, significantly saving energy and enhancing compute performance.


In addition to performance, the FlexTwin systems focus on flexibility and serviceability. They feature front-accessible hot-swap compute nodes and I/O ports, along with optional drive bays, to simplify maintenance. Redundant power supplies and hot-swappable liquid cooling pumps are included to enhance reliability and minimize downtime.


Supermicro also offers rack-scale integration services for deploying the FlexTwin architecture, with the capacity to design, build, validate, and deliver complete solutions at scale. This service is backed by a global manufacturing capacity capable of producing up to 5,000 racks per month, including 1,350 liquid-cooled racks.


The FlexTwin systems incorporate Supermicro's Resource Saving Architecture, which uses shared power supplies and critical component DLC to reduce raw material usage, maximize power efficiency, and lower data center PUE (Power Usage Effectiveness).


This announcement is based on a press release statement from Super Micro Computer (NASDAQ:SMCI), Inc. and aims to provide factual information about the new FlexTwin family of systems without endorsing any claims.


In other recent news, Super Micro Computer has seen a flurry of recent developments. The company reported record-breaking annual revenues of $14.94 billion and fourth-quarter revenues of $5.31 billion. However, Super Micro Computer has faced downgrades from Mizuho Securities, JPMorgan, and Barclays due to concerns about profitability risks, regulatory uncertainty, and market share loss in the AI server market.


Needham initiated coverage on Super Micro with a Buy rating, highlighting the company's potential to capitalize on the increasing investments in AI infrastructure. The firm forecasts a revenue compound annual growth rate (CAGR) of over 55% for Super Micro from the fiscal year 2021 to 2026, based on the company's involvement in deploying some of the world's largest AI clusters.


Super Micro Computer has also been dealing with allegations of accounting irregularities by Hindenburg Research, which it has publicly refuted. These allegations have led to a delay in the filing of Super Micro Computer's annual report as the company reassesses its internal controls over financial reporting. Despite this, Rosenblatt has maintained a Buy rating on the company's shares, while CFRA and Wells Fargo have downgraded their ratings.


The company has previewed its new X14 server platforms built on the upcoming Intel (NASDAQ:INTC)® Xeon® 6900 series processors, aiming to maximize performance for compute-intensive workloads. Furthermore, the company has appointed Susie Giordano to its board of directors and projected a revenue of between $26 billion and $30 billion for fiscal year 2025. These are the highlights of the recent developments at Super Micro Computer.


InvestingPro Insights


As Supermicro (NASDAQ: SMCI) continues to innovate with the release of its FlexTwin family of systems, the company's financial health and market performance provide a backdrop for understanding its potential growth trajectory. According to real-time data from InvestingPro, Supermicro boasts a robust market capitalization of $25.58 billion, reflecting significant investor confidence in its market position and future prospects.


The company's P/E ratio stands at an attractive 20.4, which, when adjusted for the last twelve months as of Q4 2024, slightly increases to 21.17. This valuation metric suggests that Supermicro is trading at a price relatively fair compared to its near-term earnings growth, a point supported by the company's low PEG ratio of 0.28 over the same period. This indicates that the stock may be undervalued in relation to its earnings growth potential, an InvestingPro Tip highlighting Supermicro as a potentially compelling investment opportunity.


Looking at performance, Supermicro's revenue growth has been impressive, with a 109.77% increase in the last twelve months as of Q4 2024. This growth underscores the company's success in expanding its reach and capturing market share within the competitive Technology Hardware, Storage & Peripherals industry. Furthermore, Supermicro's gross profit margin stands at 14.13%, which, despite being considered weak by some analysts, reflects the company's ability to maintain profitability in a challenging sector.


InvestingPro Tips also reveal that analysts are optimistic about Supermicro's sales growth in the current year, and six analysts have revised their earnings estimates upwards for the upcoming period. These revisions often signal a positive outlook on the company's financial performance and may interest investors looking for growth stocks.


For readers interested in a deeper dive into Supermicro's financials and market performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/SMCI. These tips provide valuable insights for those considering an investment in the company's stock.

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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