Nvidia's market growth has already been astonishing this year, with the tech giant set to potentially become the world's most valuable company in the next two and a half years thanks to explosive demand for AI.
However, it is not the only company to see a significant increase in value thanks to AI. Supermicro, a server maker, has seen an 800% increase over the past year, due in large part to its initial alignment with Nvidia. Both companies were founded in 1993 and are headquartered within 10 miles of each other.
However, it's not just its ties to Nvidia that are driving growth. The company has introduced a number of innovative technologies and features to make it more attractive to customers. These include water cooling to cool graphics accelerators in high-performance data centers and a basic architecture that simplifies server rack upgrades.
Supermicro hasn't suddenly jumped on the AI bandwagon, it has been heavily involved in the technology for almost two decades and is now enjoying the results of that initial belief. The company reported that half of its total revenue of $3.66 billion in the December quarter came from AI, prompting it to raise its 2024 revenue guidance to between $14.3 billion and $14.7 billion.
Investors are grouping Supermicro with other AI-related chip companies that develop products dedicated to accelerating AI. However, market clock reports that there is growing concern that high-flying stocks like Nvidia and Supermicro could echo the dot-com bubble of the past, although Supermicro CEO Charles Liang believes the AI boom will continue for “many quarters.” more, if not many years.”
In an interview with CRNLiang said: “Sometimes I like to compare the AI revolution to the Industrial Revolution of 200 years ago. Personally, I believe that the impact of the AI revolution on our planet may be even greater than the industrial revolution because AI affects our lives in everything, both visible and invisible. So the impact will be everywhere.”
