Here’s One More ‘Cool’ Reason to Buy Super Micro Computer Stock

  • Super Micro Computer (SMCI) is collaborating to build a large-scale artificial intelligence data center in Asia.
  • SMCI is introducing a liquid-cooled AI data center that’s optimized for Nvidia’s AI software platform.
  • Investors should think about purchasing Super Micro Computer stock.
Super Micro Computer stock - Here’s One More ‘Cool’ Reason to Buy Super Micro Computer Stock

Source: T. Schneider / Shutterstock.com

We’ve talked about Super Micro Computer (NASDAQ:SMCI) on multiple occasions, and we still keep on finding things to like about the company. Super Micro Computer stock definitely earns as “A” grade from us.

SMCI develops AI-compatible servers and related tech products. Currently, it trades is substantially below its 52-week high of $1,229. Really, that’s just an invitation to conduct your due diligence on this fascinating company with impressive revenue growth. Let’s check the latest headlines for more reasons to invest in Super Micro Computer.

Keeping It ‘Cool’ With Super Micro Computer

Even though Super Micro Computer is a leading AI server developer, the company must constantly innovate to maintain its competitive edge. Here’s an example of how Super Micro Computer is staying “cool” even while the AI hardware industry continues to heat up.

Reportedly, Super Micro Computer is teaming up with multiple tech firms to build a large-scale AI data center in Asia. That’s already good news, but there’s more to the story.

Remember, there needs to be a temperature control method for large, power-intensive AI data centers like the one that Super Micro Computer is helping to build in Asia. Super Micro Computer will “construct a liquid-cooled system with piping, water towers, and monitoring equipment.”

Super Micro Computer CEO Charles Liang calls it “Direct Liquid Cooling.” The press release didn’t share many specific details about DLC. However, Liang suggested that this technology “can lower energy costs and have a smaller environmental impact.”

A Great Idea for the Era of AI

Let’s face it. This is the Era of AI, and the kingmaker of the era is AI processor producer Nvidia (NASDAQ:NVDA). Hence, if Super Micro Computer develops Nvidia-optimized hardware, that’s a major win-win.

On that topic, Super Micro Computer just announced that it’s “introducing a ready-to-deploy liquid-cooled AI data center” that’s optimized for Nvidia’s AI Enterprise “software platform for the development and deployment of generative AI.”

That’s a smart and forward-thinking strategy for Super Micro Computer. If a company wants to get ahead, sometimes it has to serve the needs of a powerful entity like Nvidia.

It’s entirely possible that liquid-cooling mechanisms will soon be standard equipment for large AI data centers. If so, then Super Micro Computer will have a first-to-market (or at least, early-to-market) advantage. Plus, Super Micro Computer is positioning itself for success as the company’s liquid-cooling systems will be tailor-made for Nvidia’s products.

Have a No-Sweat Summer With Super Micro Computer Stock

Previously, we cited Super Micro Computer’s impressive third-quarter fiscal 2024 revenue growth. Yet, maybe you just needed more reasons to consider a share position in Super Micro Computer.

That’s fine, as Super Micro Computer is now rapidly advancing the science of large-scale AI data center temperature control. Along with that, the company is making a smart move by optimizing its cooling systems for Nvidia’s products.

So, as the summer heats up, take advantage of the recent cooling-off period in Super Micro Computer stock. We’re assigning the stock an “A” grade and today’s a great day to conduct your due diligence on Super Micro Computer.

On the date of publication, Louis Navellier had long positions in SMCI and NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/market360/2024/06/heres-one-more-cool-reason-to-buy-super-micro-computer-stock/.

©2024 InvestorPlace Media, LLC