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Supermicro (SMCI) says it has started mass deliveries of artificial intelligence servers powered by Nvidia’s (NVDA) latest and most sophisticated Blackwell Ultra chips. The AI stock popped as much as 6% on the news today.
In its press release, the computer hardware firm also confirmed that “these solutions are purpose-built and pre-validated at system, rack, and data center scale.”
Despite today’s gain, SMCI stock is down well over 20% versus its July high at the time of writing.
Why SMCI Stock Pushed Up on This News
The aforementioned announcement is significant for Super Micro stock as it suggests the Nasdaq-listed firm is not just developing cutting edge AI infrastructure, it’s already delivering it at scale.
Beginning high-volume shipments of Blackwell-equipped servers underscores SMCI’s ability to execute quickly and meet enterprise demand for high-performance artificial intelligence systems.
More importantly, the “pre-validated” nature of these solutions reduces deployment friction for customers, making Supermicro a go-to supplier for plug-and-play AI factories.
All in all, the announcement positions SMCI shares to capture market share in a rapidly expanding sector, reinforcing its role as a key enabler of next-gen computing.
Governance Issues Could Tumble Supermicro Shares Again
Despite the bullish development, Supermicro stock remains a high-risk investment mostly because the company continues to wrestle with governance issues.
Earlier in September, SMCI acknowledged deficiencies in its financial reporting practices, even warning that its remedial measures could prove insufficient in preventing future lapses.
This makes its forward price-earnings (P/E) ratio of about 21x at the time of writing looks rather stretched, even though it sits sharply below Nvidia’s 43x.
Note that Super Micro recently trimmed its full-year guidance for revenue from $40 billion to $33 billion only, raising another red flag for those interested in owning SMCI stock in the second half of 2025.
Wall Street Is Against Owning SMCI Shares at Current Levels
The above-stated concerns are also keeping Wall Street firms from recommending owning SMCI shares at current levels.
According to Barchart, the consensus rating on Supermicro stock currently sits at “Hold” only, with a mean target of roughly $48 no longer indicating meaningful further upside from here.
