Chip stocks surge after Super Micro Computer says it’s shipping 100,000 GPUs a quarter

Nvidia headquarters in Santa Clara, California.

Nvidia bucked the broader market decline on Monday and surged after Super Micro Computer said it is shipping more than 100,000 GPUs per quarter.

Shares of Nvidia gained 4% to hit about $130 per share, representing its highest level since late-August. Meanwhile, shares of Super Micro Computer gained as much as 18%.

In a presss release touting its new liquid-cooling solutions for heat-intensive AI data centers, Super Micro Computer said it’s “currently shipping over 100,000 GPUs per quarter.”

“Supermicro recently deployed more than 100,000 GPUs with liquid cooling solution for some of the largest AI factories ever built,” the company said in the press release.

According to data from Bloomberg, Super Micro Computer is Nvidia’s third largest customer, representing about 9% of its total revenue. On the flip side, about 70% of Super Micro Computer’s cost of goods sold is for Nvidia products.

Investors appeared to take Super Micro Computer’s update as a read-through that demand remains strong for Nvidia’s GPU chips.

The update follows last week’s remarks from Nvidia CEO Jensen Huang, who told CNBC that the company is experiencing “insane” demand for its next iteration of AI-enabling chips.

“Blackwell is in full production, Blackwell is as planned,” Huang said. “Everybody wants to have the most and everybody wants to be first.”

Nvidia is currently shipping its next-generation Blackwell GPUs, which Super Micro Computer alluded to in a description of its new liquid-cooling product.

“Specifically designed CDMs to enable the highest GPU per rack density with up to 96 Nvidia B200 GPUs per rack,” Super Micro Computer said.

Monday’s gain added about $117 billion and $4 billion to the market valuations of Nvidia and Super Micro Computer, respectively, according to data from YCharts.