Super Micro Surges Over 1000% on Booming Demand for AI Servers

Super Micro Computer (SMCI) stock has surged over 1000% in the past year due to booming demand for Nvidia's AI graphics cards. SMCI provides the server systems to mount these cards.

Nvidia CEO announced liquid-cooled systems are coming. These will be needed to cool next-gen Blackwell chips which use 40%+ more power.

Liquid cooling reduces data center energy use by 80% vs air cooling. SMCI already manufactures liquid-cooled servers.

SMCI is expanding production capacity for liquid-cooled servers to 1500 racks/month to meet expected demand.

Despite huge gains, SMCI stock still trades at lower sales multiple than tech sector average. With earnings expected to grow rapidly, the stock remains attractive.