Super Micro Computer ($SMCI) has entered a new partnership with Japanese information-technology company Fujitsu to provide it with energy-efficient artificial intelligence (AI) servers.
Super Micro Computer and Fujitsu said in a joint news release that they plan to create liquid-cooled servers that can run high-performance computing and generative AI applications in state-of-the-art data centers. The companies said the liquid-cooled servers will be more energy efficient.
“Promoting a green AI infrastructure that reduces power consumption and environmental impact in data centers is a top priority,” said the two companies in the news release. Financial terms of the deal were not made public.
Positive News for Super Micro Computer
The server deal is positive news for Super Micro Computer after several bruising weeks for the server maker. The company’s stock split on a 10-for-1 basis October 1, weeks after a short seller report accused Super Micro Computer of accounting irregularities, and amid media reports that the U.S. Justice Department is investigating the company.
Super Micro Computer has also delayed filing its latest annual report with the U.S. Securities and Exchange Commission (SEC) as it reviews its internal controls, and the company issued financial results at the end of August that disappointed analysts and investors. Despite these issues, SMCI stock is up nearly 50% this year, which is more than double the 20% gain in the benchmark S&P 500 index.
Is SMCI Stock a Buy?
Super Micro Computer’s stock has a consensus Hold rating among 14 Wall Street analysts. That rating is based on three Buy, 10 Hold and one Sell recommendations assigned in the past three months. The average SMCI price target of $64.36 implies 51.94% upside potential from where the stock currently trades.
