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Super Micro Computer has had its ups and downs recently but it's still a major player in the AI revolution.
Investors were reminded of that Wednesday, courtesy of Elon Musk's xAI start-up. The company is expanding its supercomputer facility in Memphis to house at least 1 million graphics processing units (GPUs), the Greater Memphis Chamber said in a press release Wednesday.
As a result Super Micro will be establishing operations in Memphis, it added, along with Nvidia and Dell Technologies.
"Memphis has provided the power and velocity necessary for not just xAI to grow and thrive, but making way for other companies as well. We're excited to welcome Nvidia, Dell, and Supermicro to the 'Digital Delta,'" Memphis Chamber CEO Ted Townsend said, referring to the city's moniker coined by FedEx founder Fred Smith.
It's welcome news for the company, which is battling through several problems right now. Investors are still waiting for Super Micro's annual report for the year ended June 30 and its September-quarter results. The delay has put the AI server maker at risk of being delisted from the Nasdaq.
At least some of the clouds appear to be clearing. A board-appointed committee found no evidence of fraud or misconduct following an investigation into the company's accounts, sending the stock 29% higher on Monday. The inquiry was launched after its auditor Ernst & Young quit in October, citing an unwillingness "to be associated with the financial statements prepared by management."
The committee recommended the company replace its chief financial officer and appoint a new chief accounting officer.
The stock, however, remains volatile while the market awaits Super Micro's financials. The shares rose 1.2% early Thursday after climbing 4% Wednesday and dropping 4% Tuesday.
The stock is likely to keep bouncing around until the company's belated earnings see the light of day.
