What Happened?
Shares of server solutions provider Super Micro (NASDAQ:SMCI) jumped 4.6% in the morning session after investor optimism rippled through the AI hardware sector as key chip supplier Advanced Micro Devices (AMD) announced a multiyear partnership to supply artificial intelligence chips to OpenAI.
The major agreement positioned AMD as a more forceful challenger in the AI chip market. Under the terms of the deal, AMD was set to provide OpenAI, the company behind ChatGPT, with its high-performance graphics chips for a massive AI infrastructure buildout. Analysts noted the partnership could yield tens of billions of dollars in annual revenue for AMD. This news created positive sentiment for server manufacturers like Super Micro, as a large-scale deployment of new AI chips was expected to drive significant demand for the specialized server systems the company builds.
After the initial pop the shares cooled down to $54.32, up 4.6% from previous close.
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What Is The Market Telling Us
Super Micro’s shares are extremely volatile and have had 81 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 3% on the news that the company unveiled a new lineup of AI-optimized computing systems at its INNOVATE! event in Madrid, Spain.
The announcement showcased several new servers designed for artificial intelligence, featuring the latest powerful graphics processing units (GPUs) from partner Nvidia, including the HGX B300 and the GB300 NVL72 rack-scale solutions. This move was seen as an effort to deepen its partnership with the AI chip giant and strengthen its operations across Europe, the Middle East, and Africa. Super Micro also highlighted its global production capabilities, noting that it was shipping systems with Nvidia’s newest chips from facilities in four different countries. The news captured investor attention, making the stock a trending topic as the market reacted positively to the expansion of its AI portfolio and its close collaboration with key tech players like Nvidia, AMD, and Intel.
Super Micro is up 80.7% since the beginning of the year, but at $54.32 per share, it is still trading 10.5% below its 52-week high of $60.71 from July 2025. Investors who bought $1,000 worth of Super Micro’s shares 5 years ago would now be looking at an investment worth $20,488.
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