Super Micro (NASDAQ:SMCI), a provider of unique server and cooling solutions for high-powered computing, has been on a tear as a direct result of the AI narrative. Even Tesla (NASDAQ:TSLA) CEO Elon Musk has joined the fray, launching his xAI as a competitor to OpenAI and others in the large language model space. SMCI stock is benefitting from this through a new xAI-Super Micro deal. Shares are up 190% in 2024.
In a tweet sent by Super Micro CEO Charles Liang late Monday, the head executive thanked Musk for showcasing the company’s liquid cooling technology. In doing so, Liang suggested he was helping the company preserve “20 billion trees for our planet.”
That’s a nice tweet, and certainly indicative that Super Micro’s customer base is fast growing.
SMCI Stock Higher on Musk Partnership
In late June, news broke that Musk’s xAI would be partnering with Super Micro to provide hardware that the AI company needs for its supercomputer. The tweet from Liang furthers that catalyst.
For Super Micro, the indication that Musk is choosing the company for his high-performance computing needs is a big positive. The company is among the biggest players in the server market, with most major companies having exposure to Super Micro. The addition of Musk is a bright spot for the fast-growing AI stock.
I think Super Micro’s outlook remains bright from here, and further news of an xAI partnership will lift shares. It’s impossible to tell just how big the global AI market will be when all is said and done. But for now, these are clearly the companies investors want exposure to.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
