Super Micro Computer (NASDAQ:SMCI) shares climbed Monday as investor enthusiasm for artificial intelligence continued to drive market momentum.
The surge follows a landmark deal announced by Advanced Micro Devices (NASDAQ:AMD), which rose sharply in premarket trading, to supply OpenAI with up to 6 gigawatts of AMD Instinct graphics processing unit (GPU) power for the AI company's next-generation infrastructure.
Super Micro, a key Original Equipment Manufacturer partner for AMD, integrates the chipmaker's CPUs and GPUs into its server and IT solutions, serving data centers and enterprise clients worldwide.
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The collaboration will begin with a 1-gigawatt deployment of AMD's MI450 GPUs in the second half of 2026, with plans to expand across multiple chip generations.
CFO Jean Hu highlighted the potential scale of the partnership, noting it could generate billions in revenue and prove highly accretive to earnings. The announcement sent AMD shares up 33% to $219.99, setting a new 52-week high.
The agreement underscores intensifying competition in the semiconductor sector. Last month, Nvidia (NASDAQ:NVDA) disclosed a $100 billion partnership with OpenAI to deploy 10 gigawatts of its Vera Rubin systems, highlighting the escalating AI infrastructure race among chipmakers.
Super Micro has emerged as a standout performer amid this surge in demand for AI-focused servers and infrastructure. The stock has gained 79% year-to-date, significantly outpacing the Nasdaq 100's 19% return, reflecting strong investor confidence in the company's role in supporting the generative AI boom.
Price Action: SMCI shares were trading higher by 6.00% to $55.08 at last check Monday.
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