Nucor earnings beat by $0.08, revenue fell short of estimates
SAN JOSE, Calif. - Super Micro Computer, Inc. (NASDAQ: SMCI), a $26.2 billion market cap company with impressive 82% revenue growth over the last twelve months, known for providing IT solutions for AI, Cloud, Storage, and 5G/Edge, has announced a strategic partnership with DataVolt to construct hyperscale AI campuses, starting in the Kingdom of Saudi Arabia. InvestingPro analysis shows the company maintains excellent financial health with a "GREAT" overall score. This collaboration aims to deliver advanced computing power for next-generation AI infrastructure, utilizing Supermicro’s direct liquid cooling technology (DLC-2) that is powered by renewable, sustainable, and net-zero green technology.
The partnership is expected to expedite the delivery of Supermicro’s ultra-dense GPU platforms, storage solutions, and rack plug-and-play (PnP) systems for DataVolt’s renewable and net-zero green AI campuses. Supermicro’s liquid cooling solutions are touted to reduce power costs by up to 40%, speed up deployment, and enhance data center efficiency with lower power usage effectiveness (PUE).
Through this collaboration, Supermicro plans to provide an optimized total IT solution that includes AI and compute servers, networking, storage, racks, and advanced liquid cooling technologies. Their liquid cooling solutions at scale are designed to enable rapid deployment of high-performing AI infrastructure while reducing total cost of ownership (TCO) by up to 20%.
The definitive agreements between the parties are still under negotiation. The estimated minimum market value of the products involved in the transaction is projected to be $20 billion, highlighting the significant market potential of the partnership. According to InvestingPro, which offers comprehensive analysis through its Pro Research Reports, SMCI shows strong liquidity with a current ratio of 6.66, indicating robust ability to fulfill its commitments. Want deeper insights? InvestingPro offers 15+ additional key metrics and tips for SMCI.
Supermicro, headquartered in San Jose, California, is known for its Application-Optimized Total IT Solutions. The company emphasizes innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure and is recognized for its Server Building Block Solutions® that allow customization based on specific workload requirements.
The information about this strategic partnership is based on a press release statement. The completion of the definitive agreements will determine the final outcome of this collaboration, and the memorandum of understanding is not binding. Investors are advised to consider the risks associated with the completion of these agreements, as detailed in Supermicro’s filings with the Securities and Exchange Commission. For comprehensive risk assessment and detailed financial analysis, access SMCI’s full Pro Research Report on InvestingPro, part of the platform’s coverage of 1,400+ US stocks.
In other recent news, Super Micro Computer has announced a significant $20 billion multi-year agreement with DataVolt, a Saudi data center firm. This deal is expected to enhance the company’s standing in AI and data center solutions. Despite this development, analyst opinions vary, with Loop Capital maintaining a Buy rating with a $70 target, while Citi and Goldman Sachs hold a Neutral and Sell rating, respectively, with targets of $37 and $24. Raymond James, on the other hand, has reiterated an Outperform rating with a $41 target.
Super Micro has also unveiled its Data Center Building Block Solutions (DCBBS), aimed at simplifying the construction of liquid-cooled AI data centers. This new solution includes servers, storage, networking, and support services, promising significant cost and environmental savings. The company’s innovative approach is expected to attract new customers and expand existing relationships, with the potential for substantial revenue growth.
Additionally, Super Micro has identified a new 10% customer, now accounting for 14% of its business, and is expected to gain traction with major clients like Apple. The company’s DLC-2 technology is also part of its strategy to drive industry-wide adoption of direct-to-chip liquid cooling. These developments collectively highlight Super Micro’s strategic positioning and potential for growth in the near future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.