Latest news with #NVIDIAGB200
Yahoo
2 days ago
- Business
- Yahoo
MU's HBM Revenues Surpass $1 Billion: Will the Momentum Persist?
Micron Technology's MU high bandwidth memory (HBM) chips are experiencing robust traction due to their growing use in high-performance computing, hyperscalers and artificial intelligence data centers. The high demand for these chips has led to Micron's HBM revenues crossing $1 billion in the second quarter of fiscal 2025, marking a major milestone. Since Micron's HBM3E and HBM3E-12H variants offer significant power reduction in comparison to its competitors while also delivering higher memory capacity, customers have already placed a large demand for these products, resulting in Micron being fully sold out of its HBM supply for calendar 2025. The HBMs developed by Micron have a total addressable market estimate of more than $35 billion for the calendar year 2025. Now the company is focusing on HBM delivery agreements for 2026. It is worth noting that the largest AI-chip manufacturer, NVIDIA NVDA, announced in January 2025 that Micron is a key supplier for its GeForce RTX 50 Blackwell GPUs, solidifying Micron's positioning in the HBM market. NVIDIA has installed Micron's HBM3E 8H chips inside the NVIDIA GB200 system and HBM3E 12H chips in NVIDIA GB300. To top it all off, Micron is developing the next generation of high bandwidth memory, HBM4, which will increase the bandwidth by more than 60% compared to HBM3E. The company will ramp the production volume of HBM4 in 2026. With Micron experiencing a sequential surge of 50% in HBM revenues in the second quarter of fiscal 2025, and considering its future plans, it is quite evident that momentum in HBMs will persist. Micron anticipates third-quarter fiscal 2025 revenues of $8.80 billion (+/-$200 million). The Zacks Consensus Estimates for third-quarter fiscal 2025 is pegged at $8.81 billion, indicating year-over-year growth of 29.33%. The global HBM market is highly consolidated, with a handful of players in this space. Companies, including SK hynix, TSMC TSM and Samsung, exist in this space. However, not all of them compete directly against Micron. While SK Hynix and Samsung develop their own HBM2E, HBM3, and HBM3E, TSMC develops HBM packages based on SK Hynix's HBMs. In 2024, SK hynix and TSMC collaborated to collectively develop HBM4 and next-generation packaging technology. This collaboration has led SK hynix to adopt TSMC's foundry process to develop its HBM4, showcased for the first time in April 2025. Since the HBM space has a few capable players and huge growth opportunities, this provides a strong growth opportunity for Micron. Shares of MU have gained 31.8% year to date compared with the Zacks Computer - Integrated Systems industry's growth of 15.1%. Image Source: Zacks Investment Research From a valuation standpoint, MU trades at a forward price-to-sales ratio of 2.84X, lower than the industry's average of 3.53X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MU's fiscal 2025 earnings implies year-over-year growth of 433%, while the 2026 earnings estimate implies growth of 55.87%. The estimates for fiscal 2025 earnings have been revised upward, while the 2026 earnings have been revised downward in the past 60 days. Image Source: Zacks Investment Research MU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
2 days ago
- Business
- Business Wire
DDN Launches Next-Gen Data Intelligence Platform at ISC 2025 to Power AI and HPC at Enterprise Scale
HAMBURG, Germany--(BUSINESS WIRE)--At the International Supercomputing Conference (ISC) 2025, DDN, the global leader in AI and data intelligence solutions, announced the official launch of its next-generation appliance: AI400X3 and enhancements to its end-to-end AI software, Infinia 2.1. Together, these innovations form the core of the DDN Data Intelligence Platform, purpose-built to meet the performance, security, and scalability demands of modern enterprises accelerating AI and HPC deployments. This milestone reinforces DDN's leadership in high-performance data infrastructure, offering enterprises a unified solution to accelerate SLA timelines, lower TCO, and unlock data-driven innovation at scale. Accelerating Enterprise AI and HPC with the DDN AI400X3 Powered by DDN EXAScaler® software, the AI400X3 delivers: Up to 70% higher write throughput and 55% higher read throughput over the previous generation Seamless integration with NVIDIA DGX™, NVIDIA GB200, Spectrum-X™, and BlueField® DPUs for future-ready AI infrastructure Enterprise-grade multi-tenancy with per-tenant isolation, VLANs, quotas, and access controls Proactive drive failure management and online upgrades with zero downtime, ensuring unmatched availability Real-time health monitoring, automated orchestration via EMF APIs, and seamless integration with enterprise collaboration tools like Slack and Microsoft Teams By simplifying deployment and reducing software complexity, the AI400X3 slashes operational costs and streamlines management—freeing IT teams to focus on innovation rather than infrastructure. NVIDIA-approved reference architectures featuring the AI400X3—validated for both NVIDIA GB200 and NVIDIA HGX B200 platforms—are available now at Introducing Infinia 2.1: Intelligent Data Services for AI Workflows The latest release of Infinia 2.1 expands support for complex, high-throughput data pipelines. New features include: Infinia Hadoop Connector (in preview) for high-performance Hadoop and Spark workloads using native S3-compatible access Expanded observability through native integrations with Datadog, Chronosphere, and OpenTelemetry These capabilities enable enterprises to gain deeper visibility into their infrastructure, reduce issue resolution times, and maintain data pipeline efficiency from edge to core. Built for Business Outcomes: Speed, Simplicity, and Scale The combination of AI400X3 and Infinia 2.1 delivers clear advantages for enterprise IT leaders: Accelerated time-to-value for AI model training, inference, and complex simulations Improved SLA compliance with multi-tenant performance guarantees and real-time diagnostics Lower operational cost with simplified architectures and fewer VMs to manage Enhanced data security and tenant isolation for CSPs and internal business units Future-proof infrastructure built to scale with emerging AI and HPC workloads 'DDN is empowering enterprises to run AI and HPC at scale with confidence,' said Sven Oehme, CTO at DDN. 'The AI400X3 and Infinia 2.1 give organizations the tools to meet the demands of AI-driven transformation—delivering performance, control, and cost-efficiency in a single, unified platform.' Meet DDN at ISC 2025 Join DDN at Booth #E01 at ISC 2025 in Hamburg to see live demonstrations of the DDN Data Intelligence Platform in action. Learn how leading enterprises, CSPs, and research institutions are using DDN to accelerate innovation and reduce time to insight. For more information, visit About DDN DDN is the world's leading AI and data intelligence company, empowering organizations to maximize the value of their data with end-to-end HPC and AI-focused solutions. Its customers range from the largest global enterprises and AI hyperscalers to cutting-edge research centers, all leveraging DDN's proven data intelligence platform for scalable, secure, and high-performance AI deployments that drive 10x returns. Follow DDN: LinkedIn, X, and YouTube.
Globe and Mail
12-03-2025
- Business
- Globe and Mail
Analysts See Another 43% Gain for Super Micro Stock, But Risks Linger
(SMCI) stock has been on a roller coaster ride. It has dropped roughly 65% from its 52-week high, weighed down by regulatory and legal hurdles. But lately, the tide seems to be turning. The company is now back in compliance with Nasdaq listing requirements, and surging, artificial intelligence (AI)-led demand for its high-efficiency server and storage systems is fueling renewed optimism. As a result, its stock has made an impressive comeback, climbing nearly 40% in the year to date. Despite this rally, analysts believe the stock still has plenty of upside potential. On average, their price targets suggest an additional 43% surge over the next 12 months. However, investors should take note of potential risks, particularly Super Micro's heavy reliance on a few key customers. With this background, let's look at the factors that could shape SMCI stock's future trajectory. What Can Drive Super Micro's Growth? Super Micro is benefitting from higher AI infrastructure spending and is witnessing solid demand for its high-performance server and storage systems. The company's air-cooled and direct liquid cooling (DLC) AI server platforms are proving to be particularly popular, helping drive impressive financial results. For the second quarter of fiscal 2025, Super Micro reported a 54.9% increase in net sales year-over-year. This growth reflects demand for its air-cooled and DLC (green computing) rack-scale AI GPU platforms from new and existing customers. Notably, the AI-related platforms contributed over 70% of its revenue during the quarter, fueled by demand from enterprise customers and cloud service providers. Super Micro is ramping up shipments of Nvidia's (NVDA) latest Blackwell products, along with air-cooled and liquid-cooled NVIDIA B200 HGX systems. With its NVIDIA GB200 racks ready for deployment, the company can capture further AI infrastructure spending. Management expects strong growth to continue through 2025 and beyond, provided the supply chain keeps pace with demand. Super Micro is also doubling down on liquid-cooled data center infrastructure. The company estimates growing adoption of liquid cooling technology as it requires less power. Its investment in DLC technology provides a significant competitive edge, enabling it to scale efficiently and meet rising demand. Additionally, Super Micro's latest generation of edge servers brings advanced AI capabilities closer to where data is generated. These compact systems offer up to 2.5 times more cores with improved energy efficiency, making them ideal for Edge AI, telecom, networking, and CDN workloads. This innovation is expected to drive demand and revenue growth. With all this momentum, the company expects to generate revenue between $23.5 billion and $25 billion in fiscal 2025, representing a 57%-67% increase year-over-year. Even more impressive, management forecasts revenue could reach $40 billion in its fiscal 2026. Is Super Micro Too Reliant on Key Customers? Super Micro's stock is well-positioned to benefit from AI-driven demand for its products. However, the company faces a significant risk due to its reliance on a few large customers. According to its latest filing, two major customers made up 27.1% and 30.6% of its net sales in Q2 (the three months ending Dec. 31, 2024). Over the first half of fiscal year 2025, three large customers accounted for 23.9%, 21%, and 14.9% of net sales. This dependence on a handful of customers has intensified over the past two quarters, raising concerns about the company's financial stability. The Bottom Line Super Micro is at the center of the AI and cloud computing revolution, making it an exciting but volatile investment. The company's demand trends, innovative AI infrastructure solutions, and aggressive revenue growth targets suggest substantial upside potential. However, regulatory challenges, customer concentration risks, and supply chain constraints remain hurdles that could impact its performance. Analysts maintain a 'Hold' consensus rating on the stock. But with an average price target of $58.50 — 43% higher than its closing price of $40.84 on March 11 — there's still room for potential gains in the near term.
