SMCI – Daily Chart
The price of SMCI shares rallied to around the $50 level, but have since pulled back to $45.35. This is an important level as a failure to get back above $47.99 would be bearish.
The company said it now ships over 100,000 GPUs per quarter and has delivered more than 2,000 liquid-cooled racks since June 2024. The company’s stock was initially boosted by the news. The company’s advanced cooling technology can manage servers of 12kW of power for AI and high-performance workloads, with a single AI rack now capable of generating over 100 kW of heat.
Liquid cooling has allowed the company to become an important provider of AI hardware, especially as demand outpaces supply at the likes of Nvidia.
SMCI completed a 10-for-1 stock split recently, which companies often do when their share prices rise and become unappealing to retail investors. After trading near $416 per share, the company now trades in the $40s after the split.
However, there is still a dark cloud surrounding the company after an investigation from the US DoJ (Department of Justice). This came after a report by short-selling firm Hindenburg Research, which accused the company of account malpractice and highlighted a rise in sales to Russia, which is a sanctioned country.
Despite the company’s report surrounding June chip sales, they will have to provide investors with a solid earnings report, after delaying their recent filing a matter of days after the short seller accusations. The weakness in the stock highlights continued concerns by investors.