(Reuters) – Tremendous Micro Laptop (NASDAQ:) mentioned on Monday it’s at the moment delivery greater than 100,000 graphics processors per quarter and unveiled a brand new suite of liquid cooling merchandise, sending the AI server maker’s shares up about 14% following a weeks-long hunch.
A increase in generative synthetic intelligence expertise has bumped up demand for the {hardware} required to course of the big quantities of knowledge genAI makes use of, serving to Tremendous Micro, which makes servers that includes main AI chips together with Nvidia (NASDAQ:)’s.
It “not too long ago deployed greater than 100,000 GPUs with liquid cooling answer (DLC) for a number of the largest AI factories ever constructed,” Tremendous Micro mentioned in a press release.
The corporate is acclaimed for its liquid cooling expertise, which boasts better power-saving than the air cooling methods utilized in some knowledge facilities. Additionally it is usually among the many first to obtain Nvidia’s coveted AI chips.
Nvidia’s shares have been up greater than 3%.
Monday’s rally gives a breath of reduction to Tremendous Micro’s traders after the inventory was slammed by mounting troubles, together with Hindenburg Analysis disclosing a brief place within the firm in August.
Quick curiosity in Tremendous Micro is simply over 20% of its free float, value about $3.59 billion, market analysis agency Ortex estimated.
“If that is associated to brief sellers attempting to purchase again shares or not is just too early to inform at this level, however on the present value, brief sellers are making short-term losses and will select to shut their positions,” Ortex mentioned, noting this might have added to the inventory’s positive aspects on the day.
Tremendous Micro’s shares misplaced greater than 9% of their worth over the past two weeks, however are nonetheless up greater than 66% this 12 months, benefiting from a rally in AI-linked shares amid Wall Avenue’s booming “picks-and-shovels” commerce.
The corporate additionally launched a brand new vary of DLC merchandise, which might allow the “highest GPU per rack density”, with as much as 96 of Nvidia’s Blackwell B200 chips per rack.
“Offering demonstrable options will assist the corporate achieve market share, particularly as soon as the newer Nvidia Blackwell GPUs come to market later this 12 months,” mentioned Gadjo Sevilla, senior AI and tech analyst for eMarketer.
(This story has been corrected to say that Hindenburg disclosed brief place in August, not final month, in paragraph 6)