Super Micro Computer (NASDAQ:SMCI) stock is surprisingly down more than 4% today, even after the company announced a new addition to its SuperCluster artificial intelligence (AI) infrastructure for the Nvidia (NASDAQ:NVDA) Omniverse platform. The SuperCluster will now include Supermicro’s Nvidia OVX system, ehanced with generative AI workflows, to improve workload scalability.
“Supermicro has led the industry in developing GPU-optimized products, traditionally for 3D graphics and application acceleration, and now for AI,” said Charles Liang, president and Chief Executive of Supermicro.
“With the rise of AI, enterprises are seeking computing infrastructure that combines all these capabilities into a single package…The system helps deliver high performance across the Omniverse platform, including generative AI integrations. By developing this SuperCluster for Omniverse, we’re not just offering a product; we’re providing a gateway to the future of application development and innovation.”
Many professionals rely on the processing-intensive 3D workflows found in Supermicro’s SuperCluster. Given the growing use cases of generative AI in a workplace context, the new addition to the SuperCluster may notably enhance Nvidia’s Omniverse.
The SuperCluster provides an infrastructure solution for everyone, from artists to engineers, providing easy access to high levels of GPU processing. With 400Gb/s and support for Nvidia’s Spectrum-X Ethernet, the supercluster allows companies to access custom large language models connected to a large GPU memory pool.
SMCI Stock Experiences Minor Cool Down in Strong Year
While today’s news hasn’t managed to reverse SMCI’s recent cold streak, the stock is still well in the green for the year. Indeed, SMCU stock is up 135% in 2024, as one of the big winners of this year’s AI craze.
Both Supermicro and Nvidia have experienced a minor sell off over the past month amid speculation that other big tech companies will enter the chipmaking game.
That said, investors generally still view SMCI and NVDA stock positively. Just yesterday both stocks surged after AMD (NASDAQ:AMD) and Microsoft (NASDAQ:MSFT) reported strong earnings growth, largely citing strong data center revenue growth, which itself is a testament to its AI business.
On the date of publication, Shrey Dua held LONG positions in NVDA. 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 held a LONG position in NVDA and AMD.
