Nvidia Gains on AI Data Center Systems Powered by Blackwell Chips
Nvidia Corporation (NVDA) shares surged on Wednesday after Super Micro Computer Inc. (SMCI), a key partner, announced the immediate availability of its new AI data center systems equipped with Nvidia's advanced Blackwell chips.
The Super Micro systems, comprising the core infrastructure for AI data center developers utilizing Blackwell chips, have reached "full production availability," the company stated. This news alleviates concerns regarding Nvidia's supply chain constraints, which have hindered the rollout of its latest AI chip.
Nvidia's stock jumped up to 5.1% to $124.64 in New York on Wednesday, reflecting optimism in the company's supply chain improvements. However, demand for the Blackwell chips continues to outstrip supply, highlighting the challenges of scaling up production.
Nvidia CEO Jensen Huang acknowledged the complexity of expanding the supply chain, noting the involvement of numerous companies in the production process. Super Micro, along with SK Hynix, Taiwan Semiconductor Manufacturing Co., Foxconn Technology Group, and others, have been instrumental in this endeavor.
Super Micro's announcement is a positive development for the company, which has faced recent challenges. In December, it announced changes in its financial and legal leadership, following allegations of revenue overstatement and accounting irregularities. Short-seller Hindenburg Research and the resignation of its auditor have further impacted Super Micro's reputation. The company is currently under investigation by the US Department of Justice.