"Super Micro Computer Inc. ( NASDAQ: SMCI) stock has its bullish supporters, some of whom feel it can withstand global trade issues and that it may be one of the best artificial intelligence (AI) stocks going forward. But it is also a target of short sellers, with more than 18% of shares held short. In the past month, Supermicro expanded its partnership with AMD and announced a partnership with Nokia. Back in August, it posted disappointing quarterly results, and the stock dropped afterward."
"The artificial intelligence-fueled tech rally sputtered when tariff concerns grew, but it seems to have resumed. Companies that can diversify to address the many demands the industry faces ultimately are poised to profit. Supermicro is one of those companies. The San Jose-based tech firm specializes in high-performance and high-efficiency servers, but it also provides software solutions as well as storage systems for data centers and enterprises focused on cloud computing, AI, 5G, and edge computing."
"AI stocks in general have felt the effects of trade war concerns, and Supermicro's margins have come under pressure. It aims to shrink its margins to increase production capacity to meet demand. Earlier in the year, the company said it was expanding its manufacturing capacity in the United States, Taiwan, and Europe to meet increasing demand, particularly for liquid-cooled data center solutions. Recently, Supermicro announced collaborations with Ericsson and others, as well as an expansion of its solutions designed for Nvidia Blackwell Architecture."
Supermicro focuses on high-performance, high-efficiency servers, software, and storage systems for cloud, AI, 5G, and edge computing. The company has over 18% of shares held short while attracting bullish investors who believe it can navigate global trade challenges. Recent partnership expansions include AMD, Nokia, and collaborations with Ericsson, along with European rollouts for Nvidia Blackwell Architecture solutions. Trade-war-related tariff concerns pressured AI stocks and Supermicro’s margins, prompting the company to reduce margins to boost production capacity. Manufacturing capacity is being expanded in the United States, Taiwan, and Europe, including liquid-cooled data center solutions, as analysts see potential upside.
Read at 24/7 Wall St.
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