The Saudi Arabia Datacenter company DataVolt has signed a multi-year cooperation agreement with Super Micro Computer, the once-struggling USA AI Server and high-performance computing platform manufacturer. On Wednesday, Super Micro's shares surged again, rising approximately 20% at one point during the trading session, and closing up by 15.7%.
On Wednesday, $Super Micro Computer (SMCI.US)$ the stock price surged again, rising about 20% during the day, continuing the strong performance of a 16% increase on Tuesday. Based on the intraday high on Wednesday, in the past two weeks, Super Micro Computer has cumulatively surged over 60% from its recent low. On Wednesday, US stocks closed with Super Micro's stock price increasing by 15.7%.
Super Micro Computer’s stock price has surged in the past two trading days, not only due to the overall rise of AI Concept stocks as market risk appetite increases but also because of a large-scale commercial agreement reached between Trump and Saudi Arabia during his visit to the Middle East. President Trump visited Saudi Arabia, Qatar, and the UAE from May 13 to 16.
$NVIDIA (NVDA.US)$, AMD, Super Micro Computer, and other companies have all received "big gifts" from wealthy individuals in the Middle East. Saudi Arabian data center company DataVolt signed a multi-year cooperation agreement with Super Micro Computer, achieving a $20 billion deal.
Super Micro Computer stated that the agreement will accelerate the delivery of ultra-dense GPU platforms and rack systems to DataVolt's hyperscale AI parks located in the Kingdom of Saudi Arabia and the USA.
DataVolt stated in a declaration that the $20 billion transaction deepens the strategic partnership between the two companies, marking an important milestone and its commitment to AI and Datacenter solutions.
In addition, $Alphabet-A (GOOGL.US)$ 、$Oracle (ORCL.US)$、$Salesforce (CRM.US)$、 $Advanced Micro Devices (AMD.US)$ 、 $Uber Technologies (UBER.US)$ Technology and DataVolt will invest 80 billion USD in advanced transformational technology in the USA and Saudi Arabia.
Previously, Super Micro Computer's partners NVIDIA and Advanced Micro Devices will supply semiconductor products to the Saudi AI company Humain for its large Datacenter projects. NVIDIA will sell over 18,000 of its latest AI chips to Humain.
Currently, the giants of the USA semiconductor industry are striving to expand the customer base for AI accelerator chips. At present, this market is primarily dominated by a few Datacenter operators, including$Microsoft (MSFT.US)$and$Amazon (AMZN.US)$Attracting sovereign AI, projects supported by the state aimed at establishing national AI capabilities, is one of the important strategies for expanding the customer base.
Bloomberg Industry Research Analyst Woo Jin Ho stated that the multi-year agreement reached with DataVolt further confirms Super Micro Computer's solid strategic position in the AI server sector despite increasing competition. "We expect Super Micro Computer to be one of the several AI server providers supporting the construction of DataVolt's AI data center, with a prospective opportunity worth billions of dollars."
Citigroup Analyst Asiya Merchant also noted that this agreement is expected to accelerate the delivery of high-performance rack systems and GPU platforms to hyperscale AI parks in Saudi Arabia and the USA.
Analysts from Raymond James began coverage of Super Micro Computer earlier this week, giving it an 'Outperform' rating. In their report, they stated that Super Micro Computer is a 'market leader in AI-optimized infrastructure' and pointed out that the company currently holds a 9% share in the $145 billion AI platform market, with potential for further growth.
However, it is important to note that Super Micro Computer's stock price has been quite volatile in recent months, with the market expressing concerns about its accounting practices and the revision of its financial estimates:
Last summer, the short-selling firm Hindenburg Research released a report claiming to have found evidence of accounting manipulation by Super Micro Computer.
In October of last year, Ernst & Young resigned as the company's auditor, expressing concerns about the internal control of financial reports and other matters. In November of last year, Super Micro Computer appointed BDO as its new audit firm.
In February of this year, Super Micro Computer submitted its financial reports for the first two quarters of fiscal year 2024 and 2025 in a timely manner, avoiding delisting before Nasdaq's deadline.
Earlier this month, Super Micro Computer once again lowered its full-year sales forecasts, acknowledging that it would be impacted by Trump's tariffs.
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