Supermicro (SMCI) launches AMD-equipped servers, stock price rises
$Super Micro Computer (SMCI.US)$ targets small and medium-sized enterprises, $Advanced Micro Devices (AMD.US)$ A new server equipped with the latest EPYC 4004 processor has been announced. Supermicro's focus is on providing innovative solutions for a variety of applications, and we can look forward to future growth. SMCI shares rose more than 4% in Wednesday's after-hours trading.
These new servers are perfect for businesses looking for a cost effective and compact solution. SMCI is the latest $NVIDIA (NVDA.US)$ They are also focusing on developing new generative AI and inference optimization systems based on AMD GPUs.
It's worth noting that Supermicro offers high-performance server and storage solutions. The company is also benefiting from strong demand for artificial intelligence (AI) solutions.
New products support growth
SMCI continues to gain market share by focusing on launching new products and diversifying its product portfolio. Additionally, the company has invested heavily in high-quality, optimized direct liquid cooling (DLC) solutions. As AI systems become more powerful, the need for effective thermal management increases, and as a result, Supermicro is in a position to successfully capitalize on growing demand for AI solutions by investing in DLC technology and expanding liquid cooling rack production capacity.
According to the analysis, analysts who are bullish on SMCI think SMCI will be the first company to market more than 1,000 direct liquid cooling racks for NVIDIA HGX AI supercomputers.
The company's sales increased by approximately 200% in the third quarter of this fiscal year. EPS increased 308% year over year due to high profits and operating leverage. SMCI's backlog of orders has recorded a record high, which suggests steady demand for products, and indicates that there is a high possibility that business momentum will continue.
Would that be a good stock to buy?
SMCI is well-positioned to benefit from AI demand. However, the company's stock price has risen by more than 439% in one year, and has risen about 207% year to date. In response to this rise, Wall Street analysts are cautious yet optimistic about the company's outlook.
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