$SMCI (+4,81 %)

Supermicro announces strategic partnership with DataVolt

May 16, 2025

SAN JOSE, Calif. --(BUSINESS WIRE)-- Super Micro Computer, Inc.
(NASDAQ: SMCI) ("Supermicro" or the "Company"), a provider of total IT solutions for AI, cloud, storage and 5G/Edge, today announced that it has entered into a strategic partnership with DataVolt under a Memorandum of Understanding ("MOU") to establish hyperscale AI campuses initially in the Kingdom of Saudi Arabia.

"Supermicro is excited to collaborate on this important endeavor to significantly improve the computing power of the next generation of AI infrastructure," said Charles Liang, President and CEO of Supermicro. "We look forward to working with DataVolt to bring our advanced AI systems to market with the latest direct liquid cooling (DLC-2) technology, which is based on local renewable, sustainable and environmentally friendly technology."

This collaboration will accelerate the deployment of Supermicro's ultra-dense GPU platforms, storage and rack PnP systems for DataVolt's gigawatt-class hyperscale gigawatt campuses and net-zero eco-AI campuses, providing our customers with access to unprecedented scalability and sustainability. Supermicro's state-of-the-art liquid cooling solutions reduce power costs by up to 40%, shorten provisioning and online time, and enable data centers to operate more efficiently with lower power usage effectiveness (PUE). As an end-to-end solution provider for enterprise and cloud data centers, Supermicro will deliver a fully tested and optimized total IT solution that includes high-performance AI and computing servers, networking, storage, racks and advanced liquid cooling technologies. Supermicro's proven liquid cooling solutions at scale enable data center operators to rapidly deploy the latest and most powerful AI infrastructure while reducing total cost of ownership by up to 20%.

The collaboration is subject to the negotiation and execution of one or more definitive agreements between the parties. The estimated minimum market value of the products contemplated in the transaction is $20 billion. This underscores the strategic partnership between the two companies to develop state-of-the-art AI infrastructure at scale.

https://ir.supermicro.com/news/news-details/2025/Supermicro-Announces-Strategic-Partnership-with-DataVolt/

The AI boom has had a major impact on the stock market landscape in recent months. However, a more differentiated picture emerges in May 2025:

📈 Current share price developments:

• $NVDA (+0,4 %) (Nvidia): Currently at $113.54. Despite impressive AI innovations, the stock is down over 19% year-to-date.
• $SMCI (+4,81 %) (Super Micro Computer): Currently trading at $32.94. Recent quarterly results showed a decline in revenue compared to the previous quarter, raising questions about the sustainability of growth.
• $AMD (+1,56 %) (AMD): Stands at $98.62. The company reported revenues of $7.4 billion in the first quarter of 2025, with the data center business in particular standing out with growth of 57%.
• $PLTR (+0,57 %) (Palantir): Currently at $108.86. Despite strong quarterly numbers, the stock fell over 12% due to concerns about valuation and slowing international growth.
• $INTC (+0,37 %) (Intel): Quoted at $19.94. The company continues to struggle with challenges in the AI space and is trying to make up lost ground against competitors like $NVDA (+0,4 %) and $AMD (+1,56 %) to regain lost ground.

🔍 Conclusion:

The AI hype has undoubtedly caused significant price movements. However, current developments show that investors are increasingly differentiating between sustainable growth and exaggerated expectations.

What do you think? Which of these stocks do you think have long-term potential and which should be treated with caution?

The Fed's interest rate decision + AMD's quarterly figures + Siemens Healthineers grows strongly + Fresenius also surprises at the start of the year + BMW expects tariff cuts + Quarterly figures from the USA in brief

The Fed's interest rate decision

• Investors are now looking ahead to the next highlight of political significance today, Wednesday: the Fed's interest rate decision.
• Observers are eager to see how the Fed will react to US President Donald Trump's demands to cut interest rates.
• It is expected to resist the political pressure and not adjust its key interest rates.
• In view of Trump's erratic tariff policy, the environment for monetary policy is very uncertain.

Quarterly figures from AMD $AMD (+1,56 %)

• Advanced Micro Devices (AMD) reported non-GAAP earnings of $0.96 per diluted share for the first quarter on Tuesday, up from $0.62 a year earlier.
• Analysts polled by FactSet had expected $0.94.
• Revenue for the quarter ended March 29 was $7.44 billion, up from $5.47 billion a year earlier.
• Analysts had expected 7.12 billion US dollars.
• For the second quarter, the chip manufacturer expects sales of between 7.1 and 7.7 billion US dollars.
• Analysts are forecasting 7.22 billion US dollars.
• Advanced Micro shares rose by almost 5% after the close of trading.

Siemens Healthineers $SHL (+1,16 %)grows strongly

• The medical technology group Siemens Healthineers grew more strongly than expected in the second quarter (to the end of March).
• Sales rose by 8.7 percent to 5.9 billion euros, as the company announced in Erlangen on Wednesday.
• On a comparable basis, revenue rose by 6.8 percent.
• This excludes currency and portfolio effects.
• The company benefited from good business in imaging and the US cancer specialist Varian.
• Adjusted earnings before interest and taxes (EBIT) improved by almost a fifth to 982 million euros.
• Savings from the restructuring of the diagnostics business also had a positive impact here.
• For fiscal year 2024/25, however, Siemens Healthineers was more cautious about earnings development due to the US tariffs.
• The company now expects adjusted earnings per share of between €2.20 and €2.50.
• Previously, the Group had forecast the lower end at 2.35 euros per share.
• Healthineers continues to expect comparable sales growth of five to six percent.

Fresenius $FRE (+0,9 %)also surprises at the start of the year

• The hospital and pharmaceuticals group Fresenius continued to grow at the start of the year and earned a surprisingly high amount.
• "We have started the year 2025 with an excellent business development and confirm the outlook for the full year," said Group CEO Michael Sen in Bad Homburg on Wednesday.
• Adjusted for one-off effects, turnover climbed by seven percent to 5.63 billion euros in the first quarter compared to the previous year, according to the DAX-listed company.
• Adjusted earnings before interest and taxes (adjusted EBIT) increased by four percent to 654 million euros.
• Although the corresponding margin fell from 11.9 to 11.6 percent, Fresenius performed better than analysts had expected on average.
• The ongoing savings program and the core business with the flourishing generics provider Kabi once again provided a tailwind.
• In contrast, the hospital division Helios recorded a decline in earnings despite sales growth due to the loss of state energy subsidies in Germany.
• Group-wide, the result from continuing operations - i.e. excluding Fresenius Medical Care (FMC) - rose by 12 percent to 416 million euros.

BMW $BMW (-1,03 %)expects tariff reductions

• The car manufacturer BMW is expecting tariff reductions in the summer and is therefore maintaining its outlook for the year.
• The tariff increases are likely to be only temporary in some cases and there should be reductions in tariffs from July 2025, the DAX-listed company announced in Munich on Wednesday.
• The current forecast takes into account tariff increases that have already come into force by March 12 as well as countermeasures taken by the company.
• "Due to the volatile development and the ongoing negotiations, the expected effects of customs duties can still only be depicted using assumptions," the Group said.
• BMW performed better than feared in the first quarter.
• Earnings before interest and taxes slipped by 22.5 percent to 3.14 billion euros due to the weakness in China, while sales fell by 7.8 percent.
• In the Automotive division, the operating margin (EBIT) fell by 1.9 percentage points to 6.9 percent.
• However, this was better than analysts' average estimates.
• At the bottom line, the surplus fell by a good quarter to 2.17 billion euros.

Quarterly figures from the USA in a nutshell

• Super Micro Computer Inc. $SMCI (+4,81 %)exceeded analysts' estimates of USD 0.30 with earnings per share of USD 0.31 in the third quarter.
• Sales of USD 4.6 billion below expectations of USD 5.05 billion.

• Electronic Arts Inc. $EA (+1,59 %)misses analysts' estimates of USD 1.08 with earnings per share of USD 0.98 in the fourth quarter.
• Sales of USD 1.9 billion above expectations of USD 1.55 billion.

• Corsair Gaming Inc. registered shares DL -.0001 $CRSR (+0,13 %)misses analysts' estimates of USD 0.11 with earnings per share of USD 0.09 in the first quarter. Revenue of USD 396.8 million above expectations of USD 366.2 million.

Wednesday: Stock market dates, economic data, quarterly figures

• ex-dividend of individual stocks
• Deutsche Lufthansa EUR 0.30
• EssilorLuxottica EUR 3.95

• Quarterly figures / company dates USA / Asia
• 12:30 Walt Disney quarterly figures
• 13:00 Uber Technologies quarterly figures
• 15:00 Philip Morris | Pepsico AGM
• 22:05 Qiagen | Adtran | Avis Budget quarterly figures
• Untimed: Sandisk quarterly figures

• Quarterly figures / Company dates Europe
• 07:00 Fresenius | Siemens Healthineers | Vonovia | Klöckner & Co | Aker ASA
• 07:30 Telecom Italia | Auto1 | BMW | Hensoldt | Novo Nordisk quarterly figures
• 07:30 Siemens Healthineers | Vonovia PK
• 07:45 Jungheinrich | Ahold Delhaize quarterly figures
• 08:00 Schaeffler | Flutter Entertainment Quarterly figures
• 08:30 Fresenius | BMW PK | Siemens Healthineers Analyst Conference
• 09:00 Endesa quarterly figures
• 10:00 Fuchs | Mercedes-Benz Group | Wacker Chemie | Grenke AGM
• 10:00 Klöckner & Co PK | Schaeffler Analyst Conference
• 10:15 BMW Analyst Conference
• 13:00 Novo Nordisk Analyst Conference
• 14:00 Auto1 Earnings Call
• 22:05 ARM Holding Quarterly Results

• Economic data

08:00 DE: New orders March seasonally adjusted FORECAST: +1.0% yoy previous: 0.0% yoy | Manufacturing turnover March

11:00 EU: Retail Sales March Eurozone PROGNOSE: +0.1% yoy previous: +0.3% yoy

20:00 US: Fed, outcome of FOMC meeting Fed funds target rate FORECAST: 4.25% to 4.50% previously: 4.25% to 4.50%

No time given: PO: ECB annual meeting

$NVDA (+0,4 %)
$AAPL (-0,21 %)
$DELL (+2,68 %)
$SMCI (+4,81 %)

AI training is not possible without fast hardware. For Apple Intelligence, Apple is now to help itself to the Nvidia shelf once again.

Apple is apparently planning to invest billions in more and newer AI technology for Apple Intelligence. The supplier is said to be GPU specialist Nvidia. This was reported by analyst Ananda Baruah from the American investment firm Loop Capital, citing sources in the supply chain. According to the sources, the order is worth around one billion US dollars. Of this, up to 250 new servers are to be purchased.

AI servers specialized in reasoning

As Baruah writes in an investment report in the stock market journal IBD, the systems in question are of the GB300 NVL72 type. These are systems that are not yet officially on the market and are intended to be particularly suitable for reasoning AI applications. A large language model reveals the work steps that were used to reach a conclusion. Corresponding models are available from major providers such as OpenAI in the USA and DeepSeek in China. Apple does not yet operate its own chatbot and does not yet use reasoning in products that are accessible to customers.

A GB300-NVL72 system is based on 72 Blackwell Ultra GPUs plus 36 Grace CPUs "in a single platform optimized for test-time scaling inference", as Nvidia describes. The systems can also be used to build so-called AI factories, in which the machines are connected to Quantum X800 InfiniBand or Spectrum X Ethernet. When using a ConnectX-8 SuperNIC, the inference output of reasoning models can be increased fifty-fold compared to the previous Hopper platform.

Large server cluster for Gen AI at Apple

Baruah also announced that Apple plans to spend between 3.7 and 4 million dollars per server. In addition to Nvidia, Dell and Super Micro are probably also among Apple's suppliers for AI hardware. According to the analyst, Apple is now "officially in the game for large server clusters in the Gen AI sector". "Gen AI" stands for generative AI systems, i.e. large language models (LLM) with and without reasoning and image generators.

Apple is pursuing a dual strategy. The company is also developing its own AI servers based on the M4, among others, in order to implement its private cloud compute concept, in which AI applications run securely in the cloud without the company itself being able to see into them.

https://www.heise.de/news/Grosser-Serverkauf-Apple-vor-KI-Megabestellung-bei-Nvidia-10328562.html

"I'm sorry, I didn't quite understand that. Could you please repeat that?"

Apple users have been hearing this too often from Siri for too many years - and not just when trying to order AI server hardware. The fact that the performance and quality of Apple's former flagship voice assistant has not improved in around a decade has finally been realized in Cupertino.

Apple's solution is typical Apple: replace the person responsible and pull out the blank checkbook. CEO Tim Cook has replaced the Head of AI John Giannandrea abgesetzt and replaced him with in-house veteran Mike Rockwell, who was most recently responsible for the development of Apple Vision. Rockwell's first official act was to directly introduce a Großbestellung bei Nvidia ($NVDA (+0,4 %)) for BG300 NVL72 systems with a total value of around $1 billion US dollars, enough for at least 250 high-end AI servers. The servers are to be built by Dell ($DELL) and Super Micro Computer ($SMCI (+4,81 %)).

This is unlikely to be the last billion that Apple $AAPL (-0,21 %) will have to invest in the coming years to make Siri at least competitive.

#siri
#nvidia
#apple
#problemsolvingstrategy

Wells Fargo overturns emissions target

Wells Fargo $WFC (+1,41 %) has abandoned its goal of achieving net zero emissions for its financed portfolio by 2050. This decision is part of a comprehensive reassessment of sustainable lending in the banking industry. The bank stated that the conditions were not right for its clients to transition to greener business practices. The move comes at a time when the political mood in Washington is changing, particularly since President Donald Trump withdrew from the Paris Agreement. Critics such as Ben Cushing of the Sierra Club call the decision irresponsible and risky for the planet.

Super Micro share price falls sharply

Super Micro $SMCI (+4,81 %) experienced a drop of over 26% this week. This is part of a long period of volatility as investors weigh the company's growth opportunities in artificial intelligence against concerns over questionable accounting practices and increasing competition. The stock's decline has partially erased gains from a rally earlier this month. Despite the challenges, Super Micro remains a major player in the AI server market, particularly through its partnerships with companies such as Meta. However, analysts warn that the company's recurring financial problems could affect its risk perception.

Trump: tariffs on cars would hit German steel industry twice

The announcement of higher US tariffs on cars could have a significant impact on the German steel industry. The steel industry is already affected by tariffs on steel of 25 percent and could be hit twice if further tariffs on cars were to follow. These tariffs could affect the competitiveness of German car manufacturers and steel producers and put the industry under pressure. Friedrich Merz, the new CDU chairman, faces major challenges in politics as he tries to drive forward the necessary changes. The debate about Germany's political course is further fueled by the measures taken by the US government.

Sources:

https://finance.yahoo.com/news/wells-fargo-drops-financed-emissions-202700466.html

https://finance.yahoo.com/news/super-micro-stock-sees-nearly-30-weekly-loss-as-ai-server-competition-mounts-190707076.html

https://www.spiegel.de/wirtschaft/donald-trump-hoehere-us-zoelle-auf-autos-duerften-stahlindustrie-in-deutschland-hart-treffen-a-12c358a3-7656-424e-85bd-dab7f8268530

After sleepless nights and a lot of back and forth, it has finally come to an end. I am happy to have finally been able to exit at a profit and have now switched completely into $PLTR (+0,57 %) completely. Here's to a hopefully somewhat less painful time. 🤕

There is good news for Super Micro shareholders! Following the filing of delayed regulatory documents, Super Micro's share price has $SMCI (+4,81 %) gained up to 15.5% in after-hours trading. This came after the company met Nasdaq's deadline to avoid delisting.

On Tuesday after market close, Super Micro filed updated quarterly reports for the fiscal year ended June 30, 2024, as well as for the quarters ended September 30, 2024 and December 31, 2024.

Previously, the stock fell 11.8% in regular trading. Super Micro's problems began last year when short-seller Hindenburg Research reported alleged accounting manipulation. These allegations led to a dramatic fall in the share price and an investigation by the Department of Justice.

Despite the difficulties, Super Micro denied the allegations and hired a new auditor. An independent review also found no evidence of wrongdoing. Is Super Micro now on the road to recovery?