Chip stocks rise after Super Micro Computer says it ships 100,000 GPUs per quarter

• Shares of Nvidia and Super Micro Computer rose on Monday.

• Shares rose after an update from Super Micro said the company was shipping 100,000 GPS units per quarter.

• The market valuations of Nvidia and Super Micro Computer rose by $117 billion and $4 billion, respectively, on Monday.

Nvidia bucked the broader market’s decline on Monday and rose after Super Micro Computer said it shipped more than 100,000 GPUs in the quarter.

Nvidia shares gained 4% to around $130 per share, their highest level since late August. Meanwhile, shares of Super Micro Computer gained as much as 18%.

In a press release touting its new liquid cooling solutions for heat-intensive AI data centers, Super Micro Computer said it “currently ships over 100,000 GPUs per quarter.”

“Supermicro recently deployed more than 100,000 liquid-cooled GPUs for some of the largest AI fabs ever built,” the company said in the press release.

According to data from Bloomberg, Super Micro Computer is Nvidia’s third-largest customer, accounting for about 9 percent of total revenue. On the other hand, about 70% of the cost of goods sold by Super Micro Computer is for Nvidia products.

Investors appeared to take the Super Micro Computer update as a reading that demand remains strong for Nvidia’s GPU chips.

The update follows remarks last week from Nvidia CEO Jensen Huang, who told CNBC that the company is experiencing “insane” demand for its next version of AI-enabled chips.

“Blackwell is in full production, Blackwell is on schedule,” Huang said. “Everybody wants to have the most and everybody wants to be the first.”

Nvidia is currently shipping its next-gen Blackwell GPUs, which Super Micro Computer hinted at in a description of its new liquid cooling product.

“CDMs specifically designed to enable the highest GPU density per rack with up to 96 Nvidia B200 GPUs per rack,” said Super Micro Computer.

Monday’s gain added about $117 billion and $4 billion to the market valuations of Nvidia and Super Micro Computer, respectively, according to data from YCharts.

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