SMCI stock rises after adding 3 new production facilities

Shares of Super Micro Computer (SMCI) are rising as the company added three new manufacturing facilities to meet increased production demands, supporting the growth of AI needs within Big Tech.

Market Domination Anchors Josh Lipton and Julie Hyman break down the latest development for SMCI and what it could mean for the company moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino

Video transcript

Let's get to some trending tickers first up super micro computers.

The company announcing it is adding three new manufacturing facilities in Silicon Valley and globally, the company says it is adding factories to support the growth of artificial intelligence and enterprise rack scale Liquid Cool solutions.

Noting a demand increase.

Obviously, you know, we talk about this name a lot.

Uh Joy, you can run on the stock, talking about 225 percent this year.

You might think.

Well, maybe I missed my chance.

Not according to the analysts who cover it, they're still very bullish.

12 buys five holes, one lonely, sell out there.

And you know, as we've discussed bulls like it because their bet is the A I server market is only gonna get bigger and they believe this is a company that's very kind of competitively positioned to take advantage of it.

Yeah, I guess so.

I mean either that or they just mentioned something of A I and they go up, right?

I mean, Sprinkle little A I dust a little, a little liquid cooling, right?

I mean, and just for people who don't know when you're looking at a data center that has a bunch of these racks that have um A I components in them, which is a combination of chips and servers, etcetera.

They get very hot, they use a lot of energy and they get very hot.

You can cool them with air, you can cool them with liquid that sort of runs through tubes through the server rack.

So that is what super micro is now talking about expanding its manufacturing capacity for those liquid cooled systems.

There's something else I noticed though, which is that if you look at uh the correlation between super micro and NVIDIA, it's pretty high correlation.

In other words, when NVIDIA goes up, super micro tends to go up, I was looking at the two the correlation and got as high as something like 0.8 and 1 to 1 is the highest correlation you can have.

So they do tend to sort of move in tandem even when there's not necessarily big news on Super Micro.