Well, let's just say the market hasn’t exactly been sending Super Micro Computer (SMCI) a bouquet of flowers and a Hallmark card lately - especially since the stock has gotten absolutely obliterated, down over 50% from its March high. But then…  yesterday happened. And in classic Big Tech fashion, Super Micro’s stock gave everyone the classic “I’m going to change, I promise” plea, bolstering a massive 16% jump. 

(Source: Giphy) 

So, why the sudden change of heart for a company that’s been living in the Wall Street doghouse? Well, Super Micro casually dropped a little bombshell: they’re shipping 100,000 GPUs per quarter. And not just any run-of-the-mill GPUs, but the kind of AI-fueled, silicon gold that companies are practically selling their souls to get their hands on right now. Meaning, not only did Super Micro steal the spotlight during yesterday's dumpster fire, but it had investors crawling back, tail between their legs. 

(Source: IBD) 

Now just like me, you may be wondering “Why is this such big news from a company that literally delayed their earnings after accusations of fraud?”. Well I’ll tell you. As it turns out, Super Micro isn’t just slinging some dusty old graphics cards. In fact, if these GPUs are priced anything like Nvidia’s $30K monstrosities, we’re talking billions in potential orders.

In addition, this revelation came wrapped in a neat little bow alongside the launch of their shiny new cooling product. Which has been deployed with the 100,000 GPUs. And, of course, Super Micro’s CEO, Charles Liang, couldn’t resist tooting his own horn. He threw out corporate buzzwords like, “Super Micro continues to innovate, delivering full data center plug-and-play rack scale liquid cooling solutions.” Translation: Super Micro has supposedly built something to keep Microsoft and Blackrocks data centers from becoming molten heaps that cover the nation in ash. 

(Source: Toms Hardware) 

So naturally, Wall Street, being the predictable beast it is, heard “billions in orders” and immediately started drooling. Which is why after months of using SMCI as a Wall Street piñata, this was the kind of news that made investors sit up and say “BTFD”. 

(Source: Giphy) 

Now of course, given all the hype, let’s not get too carried away here. Sure, Monday’s rally was a nice little ego boost for Super Micro, but let’s not forget that this stock has been dragged through the mud. It’s still down over 50% from its March high, and the company’s got more skeletons in the closet than a Halloween store.

ICYMI, Super Micro’s been busy dealing with some… let’s call them “internal challenges.” Back in August, Hindenburg Research (the vigilante of Wall Street and professional CEO killer) swooped in with a report chock full of juicy allegations about accounting fraud - resulting in a one day -12% drop. 

(Source: Yahoo Finance) 

In turn, the company had the pleasure of announcing that it needed more time to figure out if its internal controls over financial reporting were, you know, actually functioning. Translation: We aren’t the company that Hindenburg says we are, but let’s fact-check our books to make sure (LOL)

(Source: Giphy) 

So yeah, there’s that. But again, despite all the regulatory dumpster fires, Monday’s announcement managed to inject some life back into SMCI. Why? Because, in case you’ve been living under a rock, AI is still (I’ve said it many times now) the greatest thing since sliced bread. And apparently, Super Micro is sitting pretty in the middle of it all. Sure, they’ve got some mess to clean up, but you can’t ignore the fact that this 100,000 cooling tech GPUs per quarter is a major opportunity. 

Especially considering Super Micro’s whole business is built on making servers that power websites, data storage, and—most importantly—AI training models. And as businesses scramble to get their AI game on point, demand for AI hardware is going through the roof. Right place, right time, right? Assuming, of course, they can keep their financials in check and, you know, avoid any more DOJ-sized headaches.

(Source: Giphy) 

So while Super Micro’s not out of the woods yet, yesterday's rally sort of hints to investors that there may be something worth sticking around for. However, the real question is can they keep the AI-powered steam running… or will they actually be a clusterf***k and disgrace of a company that Hindenburg says they are.

We shall see friends, we shall see. In the meantime though, stay safe and stay frosty! Until next time… 

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Stocks.News holds positions in Microsoft as mentioned in the article.