Latest news with #Supermicro
Forbes
2 days ago
- Business
- Forbes
Data And Energy Are Building Blocks For AI
Modern server room, corridor in data centre with Supercomputer racks, neon lights and conditioners. ... More 3D rendering illustration In brainstorming the creation of new artificial intelligence infrastructure, some common guidelines and concepts apply. I've seen a lot of these kinds of plans developed over the last year, as companies start embracing one of the biggest transformational technology shifts ever, really, the only one of its kind. Yes, we had the Internet and the cloud, and Moore's law shrinking hardware, but we never had technologies really able to pass the Turing test in the ways that they can now. In any case, when you look at all of the moving parts in any AI project, you come up with two major fundamental pieces – one is data, the digital traffic required to interact with a neural network. The second is energy – the power that it takes to run these systems. After all, our central nervous systems run on a certain kind of power, too. The data centers of the AI era will be requiring a lot of juice, and so you could think of energy as the physical component complementing data, which is the actual content in the system. With this duality in mind, we can explore how companies are moving the ball forward. A recent article on the company Supermicro talks about 'a holistic approach to AI focusing not just on launching cutting-edge hardware, but on the entire AI stack, from compute to network architecture and energy efficiency.' Supermicro is, famously, a contractor for the xAI Colossus project that's one of the largest data centers of its kind in the world. I reported on its colossal build early in the game, as Musk was continuing to double down on the number of GPUs slotted into the project. In any case, the liquid cooling systems developed at Supermicro are an example of how to apply energy concepts to the AI space. Read the article to see how Supermicro has innovated the build. 'These look like standard servers, but the infrastructure needed to cool and power them at this scale doesn't exist,' says Johnson Eung, a senior growth products manager in AI supercomputing for Supermicro. 'So we've worked with customers to create this from the ground up, providing clear parameters to ensure it's done responsibly, safely, and sustainably.' The Department of Energy is also weighing in on these processes. Citing the scale of AI growth, agency leaders are making recommendations and evaluating how all of this works in enterprise. Here's a list of stakeholders enumerated by the department for collaboration: · Hyperscalers: Amazon, Google, Meta, Microsoft, OpenAI · Data center developers/innovators: Blackstone/QTS Data Centers, Digital Realty, Verrus · Technology providers: Fervo, General Electric, Hitachi, Intel, HPE, Long Duration Energy Storage Council, Nvidia · Electricity companies: Associated Electric Cooperative, Constellation, Duke Energy, Evergy, NPPD, NextEra, PPL, Portland General, PSEG, Southern Company/Georgia Power, Vistra · Independent system operators and regional transmission operators: CAISO, MISO, PJM, SPP · Environmental NGOs: NRDC · Researchers: Association for Computing Machinery, Brattle, Caltech, Carnegie Mellon, Department of Energy, EPRI, Johns Hopkins, IEEE, LBNL, MIT Lincoln Lab, NYU, UC-Santa Barbara, University of Chicago You can read the rest of the report here. I got more insight on some of this type of architecture at two IIA interviews in April. I interviewed Sridhar Ramaswami of Snowflake about how that company maintains a marketplace for data, with collaborative approaches and cross-cloud systems. He talked about AI as a new medium of interaction, and discussed product philosophy for chatbots and workflows. 'AI has to be easy to use, it has to be efficient, and it needs to be trustworthy,' Ramaswami said. He also discussed customer service models. 'When it comes to investments, we don't require our customers to sign up for AI as a product, to make commitments to buy a certain amount of AI,' Ramaswami said. 'It's very much a pay as you go kind of model. And the last point … on trustworthiness is something that we keep hammering on, which is that every software product comes with an intuitive understanding of what is right and what is wrong.' Another interview was with Chase Lochmiller and Nadav Eiron of Cruso. Here's where we talked about energy in the equation. Discussing 'vertically integrated AI infrastructure,' and the fundamental role of AI in business, Lochmiller went back to that idea of data use supported by energy: 'AI infrastructure at scale really leads to this convergence of energy and computing,' he said. 'You know, the computing infrastructure to run AI at a really meaningful scale just requires tremendous amount of energy. … I think it's important to put scale into context, because sometimes, if I just start standing up here and, you know, citing really, really big numbers, they just seem sort of meaningless.' He explained that the company is contemplating a project in Abilene that is intended to consume 1.2 gigawatts of power, and mentioned how the firm wants to support that system. 'We've taken an energy first approach, which means actually bringing the demand for computing to areas that we can access, low cost, clean abundant energy, energy we can effectively produce clean energy at scale in a cost-effective basis,' he said. 'We can deliver computing infrastructure that is powered both cleaner and cheaper than existing infrastructure in large markets like Virginia, the way we affect that is that for the first time in history, we're actually seeing clean energy solutions being the cheaper ways to produce energy.' So, powering the right data sets leads to the kind of equation that you want to promote when building for AI data centers of the future. I'll keep bringing these sorts of perspectives as we brainstorm the optimization of data centers in 2025 and in the years ahead.
TECHx
3 days ago
- Business
- TECHx
Vik Malyala Talks AI, Efficiency, and Sustainability
Home » Interview Of The Week » Vik Malyala Talks AI, Efficiency, and Sustainability We caught up with Vik Malyala, President and Managing Director of Supermicro for the Europe, Middle East, and Africa (EMEA) region, during COMPUTEX 2025 to discuss the evolving technology landscape, Supermicro's competitive edge, and the company's strong commitment to sustainability in data centers. TECHx Media: Supermicro has been a regular exhibitor at Computex over the years. What's different this time around? Vik Malyala: This year, the biggest theme we see across every booth and every corner of the show is AI-first. While the industry has traditionally showcased a broad mix of solutions, the profile of customers and applications is clearly shifting. There's a major focus on AI, whether it's training or inferencing workloads. Even outside enterprise AI, there's a buzz around gaming and workstation improvements that enhance user experiences. What's encouraging is the quality of conversations, people are genuinely engaged, eager to understand the technology deeply. It feels like no one wants to miss out on the opportunities AI is creating. Computex continues to be an excellent platform for us to connect with customers, understand their needs, and showcase how Supermicro fits into their AI journeys. TECHx Media: What would you say is Supermicro's competitive advantage over other global players? Vik Malyala: One key differentiator is our time to market, and that's not as simple as it sounds. What really enables us is our fully vertically integrated approach. We design, develop, manufacture, integrate, test, and support everything under one roof. We call this the 'building block' approach. This approach allows us to keep pace with rapid technology transitions and bring fully vetted platforms and solutions to customers faster than others. The second big focus is energy efficiency. Data centers and customers are often constrained by power availability, so optimizing deployments within a power budget is critical. For over 16 years, Supermicro has prioritized energy-efficient designs, helping customers adopt green technology at scale. If you don't embrace energy efficiency, you risk falling behind. In summary: rapid development, energy-efficient customization, and application-optimized solutions are the pillars of our differentiation. TECHx Media: AI is a huge reality right now. How has Supermicro integrated AI into its product portfolio, and what real-world impacts are you seeing? Vik Malyala: That's a complex but fascinating question. To improve human experience through AI, huge computational power is needed, especially for developing massive large language models, some with over a trillion parameters, and growing. A handful of companies develop these models, and efficiency is critical. We look closely at power usage effectiveness (PUE), and one way to improve PUE is liquid cooling, which is far more efficient at removing heat than traditional air cooling. Supermicro has pioneered large-scale liquid-cooled compute infrastructure. Just recently, we announced the Supermicro DLC2 system, which can remove up to 98% of heat using liquid cooling. This drastically improves data center efficiency, lowers power consumption, and supports sustainability goals. On the inferencing side, the real-time application of AI models, we offer over 20 different solutions integrating accelerators from Nvidia, Intel, AMD, and others. These come in various form factors to meet the diverse needs of data center cores and edge deployments. Our goal is to deliver the right-sized, optimized solution for each customer, always aligned with energy efficiency and performance. TECHx Media: Sustainability and green computing seem integral to Supermicro's strategy. How important is this focus? Vik Malyala: Sustainability is core to everything we do. Data centers today consume 2-3% of global power, and with ever-growing data center sizes, moving from tens of megawatts to gigawatts, power consumption is skyrocketing. Through our data center building block solutions (DCBS), we optimize every element of data center design and operation. This holistic approach ensures we manage sustainability in a meaningful, measurable way. It's not just a buzzword for us, it's embedded deeply in our culture and operations. Given the scale of deployment we're seeing now, our commitment to green technology is more visible and more critical than ever. Watch full video interview on TECHx TV.
Yahoo
21-05-2025
- Business
- Yahoo
Supermicro Eyes Texas, Mississippi For AI Server Growth As Microsoft, Amazon Increase Spending
Super Micro Computer (NASDAQ:SMCI) plans to expand its server production capacity in U.S. states such as Mississippi and Texas. Big Tech giants Microsoft Corp (NASDAQ:MSFT) and Inc (NASDAQ:AMZN) spend big bucks to build data centers to train and deploy artificial intelligence models globally. The company said it also got a boost from President Trump's push for AI server company's Chair and Chief, Charles Liang, backed the company's expansion by describing the surge in the global demand for artificial intelligence in an interview with the Wall Street Journal on Monday. Liang recognized growth opportunities in the U.S., Europe, and Japan. In February, Super Micro Computer showcased plans to build its third campus in San Jose. Liang said the company was eyeing manufacturing in Texas and Mississippi as costs in Silicon Valley rise. Super Micro Computer makes the bulk of its servers in California. Super Micro Computer stock declined over 52% in the last 12 months as the company's internal financing controls came under scrutiny after its independent auditor resigned last October over governance and transparency concerns, which led the company to delay filing its quarterly and full-year results. Delayed orders of servers and other computer products due to tariff uncertainties prompted the company to cut its outlook. Super Micro Computer now expects fiscal year sales of $21.8 billion—$22.6 billion, down from a prior outlook of $23.5 billion—$25 billion. Liang acknowledged production challenges in the U.S., including higher costs and a three-decade-old lack of a semiconductor production system, which made its infrastructure and people unfamiliar with manufacturing jobs. Raymond James initiated coverage on Super Micro Computer, citing AI platforms constitute approximately 70% of Supermicro's revenue, positioning it as a dominant player among branded server vendors. Price Action: SMCI shares were trading higher by 1.19% to $43.28 premarket at last check Wednesday. Read Next:Photo by JHVEPhoto via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? SUPER MICRO COMPUTER (SMCI): Free Stock Analysis Report This article Supermicro Eyes Texas, Mississippi For AI Server Growth As Microsoft, Amazon Increase Spending originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
Yahoo
21-05-2025
- Business
- Yahoo
Is Super Micro Computer a Better Stock Pick Than Nvidia?
Super Micro Computer recently signed a $20 billion deal. Supermicro's direct liquid-cooled technology helps clients save money. Nvidia's stock is more expensive than Supermicro's 10 stocks we like better than Super Micro Computer › Nvidia (NASDAQ: NVDA) has been a very successful stock pick over the past few years, but some are worried that it may be heading for some bumpy times. However, there's a strong trend toward more data center buildouts, as we're a long way from having artificial intelligence (AI) deployed to the scale that many people envision it can reach. That's where Super Micro Computer (NASDAQ: SMCI) comes in. It makes data center components that house and cool computing devices within a data center. This is a critical part of data center infrastructure, but does it make Supermicro (as the company often calls itself) a better pick than Nvidia? Nvidia rose to the top of the computing market through its best-in-class graphics processing units (GPUs), which are used to process multiple calculations in parallel. They can also be connected in clusters to amplify this effect, so they have been top picks in data centers focused on AI processing. GPUs create a ton of heat, and managing that heat load effectively is critical for optimal performance and the service life of the GPU. Supermicro offers a few solutions, but the most intriguing option is its direct liquid cooling (DLC) method, which uses liquid to cool computing devices instead of air. By using liquid, Supermicro doesn't need to account for as much airflow within a data center, so it can pack more computing devices into a smaller area. The company estimates this technique offers a 40% energy savings and 80% space savings, which makes building these expensive data centers far cheaper. While Nvidia's superior product offering distinguishes it from its competitors, Supermicro doesn't have the same degree of separation. Some of Supermicro's competitors also offer liquid cooling options, so they don't have Nvidia's pricing power. This shows up in the difference between each company's gross margin. Nvidia can charge a massive premium for its product because it knows that it has a superior offering. Supermicro cannot, as its clients could easily go to another competitor within the space. This is one strike against Supermicro, but there are other reasons Supermicro may be a smart stock to consider. Recently, Supermicro announced a $20 billion partnership with DataVolt, a Saudi Arabian data center company. This caused the stock to rise rapidly, gaining around 20% since that announcement and 43% in the last month. This is a big deal for Supermicro's stock, but after the positive reaction to the news, it is far more expensive than it was just a few weeks ago. At 22 times forward earnings, Super Micro Computer now trades at the same valuation as the S&P 500. Despite the deal, Supermicro isn't expected to grow as fast as Nvidia. For fiscal year 2025, which ends June 30, Supermicro's revenue is expected to rise 48%, while Nvidia's is expected to increase at a 53% clip for fiscal year 2026, which ends in January 2026. Those are still two incredibly fast growth rates, and no investors should be disappointed in either rate. So, with the two growing at the same rate and Supermicro's stock being cheaper than Nvidia's, does that make it a buy over Nvidia? I'd say no. The biggest issue for me is Supermicro's falling gross margin, which rapidly declined over the past few quarters. There isn't a massive differentiating factor between Supermicro's product and its competitors, so it could easily be disrupted if someone comes out with an innovative technique or technology. Nvidia has solidified its spot in nearly all data centers built around the globe, and its technology is a differentiating factor between it and its competitors, which is why I think Nvidia is a better stock pick between the two. Before you buy stock in Super Micro Computer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Super Micro Computer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Is Super Micro Computer a Better Stock Pick Than Nvidia? was originally published by The Motley Fool
Globe and Mail
17-05-2025
- Business
- Globe and Mail
Is Super Micro Computer Stock a Buy Now?
Super Micro Computer (NASDAQ: SMCI), more commonly known as Supermicro, went on a wild ride over the past year. The maker of artificial intelligence (AI) servers closed at a record split-adjusted high of $118.81 on March 13, 2024, which marked a 1,020% gain over the previous 12 months. At the time, investors were impressed by its brisk sales of liquid-cooled AI servers, which ran on Nvidia 's high-end data center graphics processing units (GPUs). But today, Supermicro trades at about $47. Supermicro lost its luster as it struggled with a delayed 10-K filing due to accounting issues, the departure of its auditor, delisting threats, and regulatory probes. Its slowing growth and declining gross margins also indicated it was losing its pricing power against its larger competitors. The company finally hired a new auditor, filed its overdue 10-K this February, dodged a delisting, and seemed to placate the regulators. But its growth is still cooling off as the macro and competitive headwinds intensify across the evolving AI market. So should investors still buy its stock today? What happened to Supermicro over the past year? Supermicro is still an underdog in traditional servers compared to market leaders like Hewlett Packard Enterprise and Dell Technologies. But it carved out a niche with its dedicated AI servers, and Raymond James estimates it now controls about 9% of that growing market. Its close relationship with Nvidia also gave it access to a steady supply of top-tier data center GPUs. Supermicro's revenue surged 46% in its fiscal 2022 (which ended in June 2022), 37% in fiscal 2023, and 110% in fiscal 2024. Its gross margin expanded from 15.4% in fiscal 2022 to 18% in fiscal 2023 as the AI market heated up. But its gross margin declined to 14.1% in fiscal 2024 as it faced tougher competition and relied on aggressive pricing strategies to sell more servers. Over the past year, its revenue growth continued to cool off as its gross margins shrank. Metric Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue growth (YOY) 201% 144% 180% 55% 19% Gross margin 15.5% 11.2% 13.1% 11.8% 9.6% Data source: Supermicro. YOY = year-over-year. Many of its customers postponed their new AI server purchases in anticipation of Nvidia's next-gen Blackwell chips, while supply chain constraints made it harder to fulfill its existing orders. The macro headwinds exacerbated that pressure by forcing many companies to rein in their spending on pricey AI servers. As a result, its inventory levels rose, its pricing power waned, and its gross margins contracted. What will happen to Supermicro over the next year? For the fourth quarter of fiscal 2025, Supermicro expects its revenue to grow at a midpoint of 13% year over year as it ramps up its production of Blackwell-powered servers and data center building block solutions -- which bundle its AI servers and software for quick deployments. For the full year, it expects its revenue to rise 46% to 51%. That outlook is still impressive, but it was scaled back from its prior outlook for 57% to 67% growth. Analysts expect its revenue to rise 48% in fiscal 2025, 36% in fiscal 2026, and 25% in fiscal 2027. We should take those estimates with a grain of salt, but investors shouldn't expect it to grow as rapidly as it did over the past three years. That slowdown wouldn't be surprising, since Hewlett Packard Enterprise, Dell, and other major server makers have been rolling out more dedicated AI servers for the booming market. Supermicro established an early mover's advantage in the space, but it doesn't have much of a moat against those rivals. So is it the right time to buy Supermicro's stock? Supermicro still faces a lot of macro and competitive challenges, but it also looks like a bargain at 18 times next year's earnings. The AI server market could still have a compound annual growth rate of 34.3% from 2024 to 2030, according to MarketsandMarkets Research, so there could be plenty of room for Supermicro, Hewlett Packard Enterprise, and Dell to grow without trampling one another. If you believe Supermicro can defend its niche with its high-end liquid-cooled servers, its stock might be worth accumulating as it trades far below its all-time highs. But investors should watch its gross margins closely to see if it can maintain its pricing power in this tough market. Should you invest $1,000 in Super Micro Computer right now? Before you buy stock in Super Micro Computer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,385!* Now, it's worth noting Stock Advisor 's total average return is967% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 12, 2025
