Source: Zhitong Finance

in$NVIDIA (NVDA.US)$Driven by quarterly results and guidelines that exceeded expectations,$Super Micro Computer (SMCI.US)$The stock price once rose more than 10% on Thursday, which also prompted Bank of America to reconfirm its “buy” rating for the artificial intelligence server company.

Analyst Ruplu Bhattacharya wrote in an investor report: “We believe that the biggest takeaway from Nvidia's FY2025 first quarter earnings call is that demand for AI-related accelerated computing remains strong and is expanding from cloud service providers to consumer internet companies, enterprises, and sovereign artificial intelligence.”

“In our view, ultra-microcomputers will benefit from this growing demand because they are well-positioned with Tier 2 (cloud service providers) such as CoreWeave, which are seeing strong demand and are expanding globally; have some corporate strength in specific verticals such as financial services, drug discovery, and autonomous vehicles, and are currently investing in expanding sales, marketing, and customer engineering teams; and are in early discussions with sovereign entities that are looking for partners who can customize their AI settings to maximize hardware performance while providing an attractive price-performance ratio.”

Bhattacharya said that one of the biggest advantages of ultra-microcomputers over other server companies is their ability to provide large-scale liquid cooling.

Bhattacharya explained that currently, only 1% of data centers use liquid cooling—liquid coolant (mostly water) to absorb and transfer heat from server electronic components—but ultra-microcomputer management said this proportion is expected to grow to 20% over the next 12 to 18 months.

Bhattacharya added that ultra-microcomputers had a “large” order for liquid-cooled racks in the fourth fiscal quarter. By the end of next quarter, the company's total shipment volume was 5,000 units, and it should be able to ship 2,000 liquid-cooled racks every month.

editor/tolk