Super Micro Computer (SMCI) shares rose 10.2% on Monday, to close at $60.05. The jump followed news of a new strategic partnership and reports of softened trade enforcement between the United States and China.
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AI Partnership and Trade Pause Boost Server Outlook
Digi Power X announced that Super Micro Computer will be the exclusive server supplier for its new ARMS 200 modular data center platform. The platform is designed to support up to 256 Nvidia (NVDA) B200 or B300 GPUs per pod, with each pod offering one megawatt of compute capacity. Digi Power X plans to deploy the system at its Alabama site, scaling to 40 megawatts in total. That would support around 10,240 Nvidia GPUs. The initial rollout is planned for the fourth quarter of 2025, with a full launch expected in early 2026.
The deal highlights Super Micro Computer’s position in the AI server infrastructure market. The company has built its product line around modular designs through its Data Center Building Block Solutions strategy. The ARMS 200 integration aligns with that approach and expands the company’s reach into high-density GPU workloads.
The stock also benefited from reports that the U.S. Department of Commerce may delay enforcement of export rules aimed at China. Several news outlets cited current and former officials who said the pause is part of a broader effort to keep trade channels open. Easing trade risk supports hardware and semiconductor firms that serve global customers. Super Micro Computer, which has exposure to Asia, may benefit if current restrictions stay limited through the next quarter.
SMCI is set to report fiscal fourth-quarter earnings on August 5. Analysts forecast earnings of $0.45 per share, down 30.2% from last year. Revenue is expected to rise 12.8% year-over-year to $5.99 billion. The stock is up nearly 100% year-to-date and has gained 112% over the past six months.
Nvidia and Vertiv Also Stand to Benefit
Nvidia and Vertiv Holdings (VRT) also stand to gain from rising demand for modular AI data centers. Nvidia supplies the GPUs, and Vertiv Holdings provides thermal and power systems used in high-density builds. All three names are linked by the growing need for AI-ready infrastructure.
Is SMCI Stock a Good Buy?
On the Street, Super Micro boasts a Moderate Buy consensus rating, with an average SMCI stock price target of $42.85. This implies a 28.64% downside.
