Super Micro Computer (SMCI) saw shares rise 2.4% after launching an AI factory cluster using Nvidia’s Blackwell chips. The solution simplifies enterprise AI deployment with configurations ranging from 4 to 32 nodes and up to 256 GPUs. SMCI stock has declined over 40% since reporting Q1 financials.

Supermicro’s new AI factory cluster boosts their position in enterprise AI adoption. Integration of Nvidia’s software and networking enhances performance and compatibility. Demand for AI infrastructure could lead to orders from cloud providers, research labs, and Fortune 500 firms. Will the launch drive SMCI shares higher?

Despite the AI cluster launch, SMCI shares may not be a good buy due to concerns about internal financial controls and reliance on Nvidia architecture. Margin pressure from rising component costs and competition from Dell and HPE also pose risks. Insiders have been selling SMCI shares.

From a technical perspective, SMCI is trading below major moving averages, indicating bearish control. Wall Street analysts are not bullish on SMCI stock. The AI server company faces challenges despite the launch of the AI factory cluster.

Read more at Yahoo Finance: As Super Micro Reveals a New AI Factory, Should You Buy, Sell, or Hold SMCI Stock?