This technology company managed to increase its shares manifold last year from giants like Nvidia.

Super Micro Computer, a company that until recently was known for Server, has seen its shares skyrocket more than twelvefold in a year. This rapid growth put it in a privileged position to be included in the index S&P 500 This Monday, March 18, thus becoming the best performing company in said index during the analyzed period.

founded in silicon Valley In 1993, at the same time NVIDIAThe trajectories of both companies have been different yet parallel supermicroLed from its beginning by charles liangstands in construction Server For data centers And there is a lot of benefit from the increase of cloud computing And this digital economy,

rise of artificial intelligence (AI) has been the catalyst for recent success supermicroThanks for asking for chips NVIDIARequired to perform complex calculations as required by the system chatgpt Of OpenAI require. proximity to supermicro to the headquarters of NVIDIA In California has facilitated close cooperation between the two companies.

“Our engineering teams are able to work together from morning till midnight”he pointed Liang in an interview with Wall Street Journal. This collaboration has allowed Supermicro to capitalize on the demand for optimized infrastructure for AI projects, from self-driving car technologies to language generation systems.

strategy of supermicro Offering electronic “building blocks” that can be assembled Server The almost infinite variety of configurations has been a key differentiator compared to its competitors, who offer a more limited menu to their customers.

This flexibility has given them a significant advantage in the age of AI, allowing them to adapt infrastructure Server To the specific needs of each project. “Flexibility has been an advantage in the rise of AI,” industry analysts say, shedding light on how technology developers work. autonomous cars And AI systems like chatgpt configuration required Server apart.

Competitors in the industry are trying to match its pace supermicro to manufacture Server personalized, but according to hans mosesmannanalyst Rosenblatt Securities, “The treadmill goes too fast.”,

supermicro Has gained notoriety for securing large amounts of advanced ai chips Of NVIDIA, even during periods of severe shortage. This achievement is based on a strategic inventory accumulation, valued at over one billion dollars, which has allowed supermicro will not only meet the existing demand but also plan significant expansion in its production and capacities.

CEO of supermicro, charles liang, has been emphatic about the increase in funding needed to continue receiving the expensive chips, which cost around $25,000. Recently, the company has made bold financial moves, allowing it to raise $1.5 billion through the sale of convertible debt and adding $600 million through a stock issue three months ago. “We need more money because the demand is very strong”he claimed Liang,

supermicro It focuses not only on meeting the current demand but also on anticipating future market needs. As part of its strategy, Liang plans to expand manufacturing not only in San Jose, California but also inside taiwan And malaysiaWith a target of producing 5,000 racks Server per month, which would be equivalent to a computing infrastructure approximately 1.83 meters high and approximately 3.22 kilometers long. More than 50% of this production will be dedicated to AI.

This expansion is not only a response to current demand, but also a long-term approach LiangJoe estimates that the manufacturing growth is enough to push the company’s potential revenue to more than $25 billion annually, an increase of about $10 billion in annual sales based on the company’s most recent quarterly earnings.

supermicro Faces challenges and opportunities in a competitive market artificial intelligence (IA), highlights its effort to stay ahead in the market share battle against giants like Dell Technologies And Hewlett Packard Enterprise ,hpe), which have more employees and generate more than twice the revenue.

Despite these challenges the company has achieved remarkable sales Server More than half of its sales of nearly $3.7 billion in the latest quarterly report are AI-oriented. strategy of supermicro This includes an aggressive pricing policy to gain more ground in the market, with a gross profit margin of 15% in the last quarter, a decrease of 17% from the previous quarter, according to the financial director. david weigand, This approach is contrary to hpeWhich recorded a gross margin of 36% in the same period.

Analysts differ on the potential of supermicro To maintain its long-term position in the region. matt brysonanalyst wedbushpointed out that historically no company Server It has achieved more than 30% market share adding “There’s no reason Dell can’t do exactly what they’re doing.”

However, other analysts argue that established competitors may face difficulties in bringing new products to market quickly, in addition to the larger revenue streams from software and services.

This fight for the sale of microchips This comes at a time when the market for accelerators AyeAccording to chip manufacturer estimates Advanced Micro DevicesWith an expected demand to reach $400 billion by 2027 Server Which will increase parallelly.