Why Super Micro Computer Stock Is Soaring Today

Super Micro Computer (NASDAQ: SMCI) stock is surging in Wednesday's trading thanks to multiple bullish catalysts. The company's share price was up 5.6% as of 3:30 p.m. ET and had been up as much as 10.2% earlier in trading.

Supermicro stock is seeing an uptick in bullish momentum following the latest inflation data from the Bureau of Labor Statistics. The server specialist's valuation is also getting a boost from the company's new cybersecurity partnership and a report that Nvidia and other semiconductor leaders could be teaming up to purchase Intel's chip foundry business.

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Supermicro stock jumps on cybersecurity news

In addition to bullish momentum for the broader market spurred by lower-than-anticipated inflation, Supermicro stock is getting a boost from a new cybersecurity initiative. The company published a joint press release with Exein this morning announcing that the two companies had entered into a new technology partnership.

Through the team-up, Exein will incorporate its embedded security solutions into Supermicro's hardware. Exein's artificial intelligence (AI) technologies will be built into Supermicro's servers to minimize security risks for edge computing, Internet of Things, and infrastructure services.

Reports about the future of Intel's foundry unit are also lifting Supermicro

A new report surfaced today indicating that Nvidia, Taiwan Semiconductor Manufacturing, Advanced Micro Devices, and Broadcom were looking into purchasing Intel's chip fabrication business through a joint venture. While Intel's foundry business has been struggling, the ability to fabricate advanced chip designs for AI and other purposes within the U.S. is taking on added significance in light of concerns that China could exert more control over Taiwan in the coming years.

Supermicro relies on Nvidia's advanced processors as the key hardware component in its high-performance rack servers, and Nvidia relies on Taiwan Semiconductor Manufacturing to manufacture its chip designs. Improving domestic semiconductor fabrication capabilities would be a major positive development for Nvidia and Supermicro because it would reduce geopolitical risk factors.

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Keith Noonan has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: short May 2025 $30 calls on Intel. The Motley Fool has a disclosure policy.