Forget Nvidia, here’s another tech company that’s absolutely loving the AI party: Supermicro builds AI servers and saw its value increase 8x in 12 months
Nvidia’s market growth has already been nothing short of staggering this year, with the tech giant poised to potentially become the world’s most valuable company in the world. next two and a half years thanks to the explosive demand for AI.
However, it is not the only company seeing a significant increase in value thanks to AI. Supermicro, a server manufacturer, has seen an 800% jump in the past year, thanks in no small part to its early partnership with Nvidia. Both companies were founded in 1993 and are headquartered within 10 miles of each other.
However, it is not just the ties with Nvidia that are driving growth. The company has introduced a number of innovative technologies and features to make it more attractive to customers. These include water cooling to cool graphics accelerators in high-performance data centers and a building block architecture that simplifies server rack upgrades.
Supermicro hasn’t suddenly jumped on the AI bandwagon; it has been deeply involved in the technology for almost two decades and is now benefiting from the results of that early belief. The company reported that half of its total revenue of $3.66 billion in the December quarter came from AI, prompting the company to raise its 2024 revenue guidance to between $14.3 billion and $14.7 billion .
Investors group Supermicro with other AI-related chip companies developing products aimed at accelerating AI. However, Market overview reports that there are growing concerns that high-flying stocks like Nvidia and Supermicro could reflect the dot-com bubble of the past, although Supermicro CEO Charles Liang believes the AI boom will last “for many more quarters, if not many years.” persist.
In an interview with CRN, Liang said: “Sometimes I like to compare the AI revolution with the industrial revolution of 200 years ago. Personally, I believe that the impact of the AI revolution on our planet could be even greater than the industrial revolution, because AI affects our lives in everything, both visible and invisible. So the impact will be everywhere.”