The stocks of both Nvidia (NVDA) and Super Micro Computer (SMCI) are surging on reports that a new artificial intelligence (AI) data center system powered by the two companies is ready to launch.
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Shares of Nvidia are up 5% and Super Micro Computer’s stock has gained 7% on the day. The rise comes after the companies announced that Super Micro Computer’s new AI data center systems that are powered by Nvidia’s advanced Blackwell microchips are now ready to ship.
Super Micro’s product, which is an AI data center that can run Nvidia’s Blackwell chips at scale, has now reached “full production availability,” according to the companies. The news has alleviated concerns about demand for Nvidia’s chips, as well as future sales of Super Micro Computer’s AI servers that run microchips and processors.
Blackwell Chip Demand
Nvidia is betting heavily on its advanced Blackwell series of chips. Demand for the chips continues to exceed supply. The company has described the difficulties of boosting its supply chain at scale when many custom components are necessary to build its products.
For Super Micro Computer, the Blackwell-based AI data center system is a bright spot amid the company’s ongoing troubles. Last December, Super Micro said that it would replace its financial and legal leadership teams at the end of a difficult year for the company. The company is also facing a U.S. Department of Justice probe into its financial reporting practices.
NVDA stock has risen 80% in the last 12 months.
Is NVDA Stock a Buy?
Nvidia’s stock currently has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 37 Buy and three Hold recommendations assigned in the last three months. The average NVDA price target of $178.32 implies 44.02% upside from current levels.
