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Benzinga
Benzinga
Business
Anusuya Lahiri

Super Micro Teams With Nokia To Tackle Surging AI And Cloud Demand

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Nokia (NYSE:NOK) announced on Monday that it is partnering with Super Micro Computer (NASDAQ:SMCI) to provide high-performance, AI-optimized data center networking solutions. These solutions are designed for cloud providers, hyperscalers, enterprises, and communication service providers.

The companies aim to tackle surging AI and cloud workloads by combining Super Micro's 800G Ethernet switching platforms with Nokia's Service Router Linux (SR Linux) operating system and Event-Driven Automation (EDA) platform.

The partnership integrates networking and automation at the heart of modern data centers, enabling scalability, efficiency, and faster deployments.

Also Read: Supermicro, Lambda Expand AI Infrastructure With Nvidia Blackwell-Powered Servers

The announcement comes as Super Micro continues to expand its footprint in AI infrastructure. Just last week, the company deepened its collaboration with Lambda to deliver Nvidia (NASDAQ:NVDA) Blackwell-powered servers, aimed at accelerating large-scale AI deployments.

However, governance concerns remain in the spotlight. On August 29, Super Micro disclosed material weaknesses in its financial controls, warning that unresolved issues could hinder accurate reporting.

The company is working on remediation efforts after missing a 2024 filing deadline, which prompted Ernst & Young to step down as its auditor.

Investors reacted swiftly to the disclosure and a weaker-than-expected earnings report, sending shares down 21% in August.

The company's guidance and margin pressures added to the pullback, though revenue tied to AI servers continues to provide resilience.

Despite the recent volatility, Super Micro's stock remains up 33% year-to-date, supported by strong demand for AI hardware and partnerships such as the new Nokia alliance.

Price Action: SMCI shares are trading higher by 0.79% to $40.72 premarket at last check Monday.

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Photo by JHVEPhoto via Shutterstock

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