Investing.com -- Shares of Super Micro Computer (NASDAQ:SMCI) climbed 5% following a positive evaluation of the company's liquid-cooled technology prospects. Lynx Equity highlighted the NVDA keynote at CES as a positive catalyst for Super Micro Computer, underscoring the company's leading position in liquid-cooled technology which is essential for next-generation platforms.
According to Lynx Equity, the NVDA presentation at CES is anticipated to discuss the upcoming GB300 platform, which is expected to demand more advanced cooling solutions than its predecessor, the GB200. Super Micro's early leadership in liquid cooling is seen as a significant competitive edge that is not expected to erode soon. "A core element of our positive thesis on SMCI is our belief that the company has had a head-start in liquid-cooled technology over its peers, a position we believe it is in no danger of losing in the foreseeable future," an analyst from Lynx Equity commented.
The analyst firm also mentioned the potential for Super Micro to benefit from other industry developments, such as AMD’s MI325X cycle and Google’s TPU6 ramp, both of which require liquid-cooling solutions. Super Micro's history with Google (NASDAQ:GOOGL)'s liquid-cooled data centers is seen as a foundation for its continued relevance in this growing market segment.
Despite the optimism, Lynx Equity acknowledges the speculative nature of Super Micro's stock, citing uncertainties around the company's ability to satisfy regulatory filings within the looming two-month deadline. Last month, the stock experienced a sell-off due to reports that the company might seek private capital raising, which has not been confirmed by Super Micro. Lynx Equity suggests that while such a move could unsettle shareholders, an infusion of capital might be necessary to manage inventory and fund the capital-intensive expansion of the AI server business.
In summary, while Super Micro faces challenges and potential volatility in the near term, the NVDA keynote at CES has been identified as a positive event that could underscore the company's strong position in the liquid-cooled data center technology market.
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