About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Market Overview - US equity futures are slightly lower, with small caps lagging as the stock rally appears to be losing momentum, while major indexes reached all-time highs [1] - The S&P 500 futures fell by 0.1%, while Nasdaq 100 futures remained positive due to strong tech performance, particularly from Microsoft [1] - European stocks showed subdued performance as investors await the Federal Reserve meeting next week, with the Stoxx Europe 600 Index little changed [7] Company Performance - Microsoft shares rose by 1% in premarket trading after avoiding a significant antitrust penalty from the EU, leading the Magnificent 7 stocks [3] - Adobe's stock increased by approximately 3% following a strong quarterly revenue outlook, indicating positive returns from AI investments [4] - Alaska Air gained 2% after receiving a buy rating upgrade from UBS, achieving a clean sweep of buy ratings among analysts [4] - Array Technologies saw a decline of 5% after being downgraded to underperform by BofA due to tariff impacts [4] - RH's shares fell by 8% after the company reduced its full-year sales outlook, citing new US tariffs affecting its seasonal catalog [4] - Super Micro Computer's stock rose by 5% after announcing the availability of its Nvidia Blackwell Ultra solutions [4] - Warner Bros. Discovery shares increased by 6%, continuing a significant rally after news of a potential bid from Paramount Skydance [4] Economic Indicators - Analysts expect small caps to outperform larger indices over the next twelve months, with a potential 20% advance in the Russell 2000 compared to an 11% increase in the S&P 500 [6] - The market anticipates between two to three quarter-point rate cuts by the Federal Reserve by year-end, with some traders betting on a half-point cut next week [3][5] Commodity and Currency Movements - Commodities showed mixed results, with oil and base metals prices rising, while precious metals experienced declines [1][12] - The dollar rebounded from previous losses, with the yen lagging behind G-10 currency peers [10] Geopolitical and Trade Developments - US Treasury Secretary Scott Bessent is set to meet with Chinese Vice Premier He Lifeng next week to discuss trade and economic issues [21] - The US is pressuring G7 countries to impose higher tariffs on India and China regarding Russian oil purchases, which may impact market sentiment [17][37]

Core Viewpoint - Super Micro Computer Inc. is significantly benefiting from Nvidia's growth in the AI sector, acting as a crucial player in the infrastructure that supports AI technologies [2][10]. Group 1: Company Overview - Super Micro is closely tied to Nvidia, often being the first to implement Nvidia's new technologies into functional systems for demanding AI workloads [2][3]. - The company specializes in fast deployments of Nvidia's latest chips, creating ready-to-run servers designed to address challenges in AI data centers, such as power delivery and cooling [6][8]. Group 2: Stock Performance - Super Micro's stock has been on an upward trend for four consecutive days, driven by its strong connection to Nvidia's success [2][7]. - Investors are currently attracted to Super Micro due to its momentum and proven track record of quickly transitioning Nvidia's technology from labs to live environments [8][9]. Group 3: Challenges and Considerations - While Super Micro's rapid scaling is a strength, it also presents challenges, as the company is increasing operating expenses to remain competitive, raising concerns about sustainability [9]. - The company faces the dilemma of maintaining growth without overextending its resources, a common issue in the tech industry [9]. Group 4: Industry Context - The AI revolution is not solely about chip manufacturing; infrastructure plays a critical role, making Super Micro's position in the market essential to watch [10][14]. - As AI workloads become more complex, companies like Super Micro that focus on infrastructure will be as important as those creating the chips [13][14].

Core Viewpoint - Goldman Sachs has significantly upgraded the growth outlook for the AI data center equipment market, forecasting a compound annual growth rate (CAGR) of 38% from 2024 to 2029, with the market size reaching $581 billion, up from a previous estimate of $386 billion [1] AI Server Market - The AI server market is expected to grow at a CAGR of 38%, reaching $581 billion by 2029 [1] - The growth is primarily driven by strong demand from hyperscale cloud providers and secondary cloud and service providers [1] - In terms of vertical markets, the 5-year CAGR for AI servers is 28% among hyperscalers, 66% in Tier 2 cloud and service providers, and 36% in the enterprise market [3] AI Data Center Switching Market - The AI data center switching market is projected to grow at a CAGR of 36%, reaching approximately $26 billion by 2029 [1] - The back-end Ethernet switch segment is expected to see particularly strong growth, with a CAGR of 50%, reaching about $14 billion by 2029 [1] - Front-end Ethernet switches are forecasted to grow at a CAGR of 46%, reaching around $10 billion by 2029 [1] - Infiniband switches are expected to decline slightly, with a projected CAGR of -1%, reaching about $2 billion by 2029 [1] Traditional Server Market - The traditional server market is anticipated to experience a slight contraction, with a CAGR of -2% from 2024 to 2029 [1] - The total traditional data center switching market is expected to grow at a CAGR of 5%, reaching approximately $27 billion by 2029 [2] Company Ratings - Goldman Sachs has assigned a "Buy" rating to Arista Networks Inc (ANET.US) with a target price of $155, citing its strong exposure to cloud spending and expected robust revenue and EPS growth [4] - Dell Technologies (DELL.US) also received a "Buy" rating with a target price of $150, benefiting from AI server demand and a recovering PC market [4] - Super Micro Computer (SMCI.US) has been rated "Sell" with a target price of $27, as increased competition in the AI server market is expected to pressure profit margins [4]

Market Overview - U.S. stock futures declined following a rally, with major indices showing lower futures [1] - The Dow closed above 46,000 for the first time, despite negative economic indicators such as inflation rising to 2.9% year-over-year and jobless claims reaching 263,000, the highest since October 2021 [2] - The 10-year Treasury bond yielded 4.04%, while the two-year bond was at 3.56%, with markets pricing a 100% likelihood of an interest rate cut by the Federal Reserve [2] Index Performance - Dow Jones futures fell by 0.17%, S&P 500 by 0.14%, Nasdaq 100 by 0.06%, and Russell 2000 by 0.45% [3] - The SPDR S&P 500 ETF Trust (SPY) was down 0.10% at $656.95, while Invesco QQQ Trust ETF (QQQ) rose 0.0068% to $584.12 [3] Sector Performance - Most sectors in the S&P 500 closed positively, with consumer discretionary, healthcare, and materials stocks showing the largest gains, while energy stocks declined slightly [4] - The overall market strength led to significant gains, with the Dow Jones increasing by over 600 points as investors reacted to consumer inflation data [4] Company Earnings - Kroger Co. reported better-than-expected second-quarter earnings, while The Lovesac Co. saw a 15% drop in stock price after cutting its fiscal year 2026 GAAP EPS guidance [5] - Adobe Inc. rose 3.83% after exceeding third-quarter expectations and raising its fiscal 2025 outlook, while RH dropped 7.93% due to weaker-than-expected second-quarter results [16] Analyst Insights - Analysts indicate a slowdown in the U.S. labor market, with negative revisions to previous job gains suggesting a noticeable deceleration [9] - Despite the hiring slowdown, companies are retaining employees, with initial jobless claims remaining stable in the historically low range of 220,000 to 240,000 [11] - Investment strategies are shifting, with recommendations to trim risk and rebalance portfolios, particularly moving funds from Communication Services and Energy sectors to Financials [15] Commodities and Global Markets - Crude oil futures traded lower at $62.31 per barrel, while gold rose to approximately $3,644.80 per ounce [17] - Asian markets closed higher, with notable gains in indices such as Australia's ASX 200 and Japan's Nikkei 225, while European markets showed mixed results [18]

Core Insights - Super Micro Computer (SMCI) saw a pre-market increase of over 4% following the announcement of the delivery of high-capacity NVIDIA Blackwell Ultra systems [2] Company Summary - Super Micro Computer has initiated the delivery of high-capacity systems, which is expected to enhance its product offerings and potentially drive revenue growth [2]

Group 1 - Super Micro Computer, Inc. (NASDAQ:SMCI) has faced accounting issues, which have led to cautious recommendations from analysts and investors [1][2] - Despite previous accounting concerns, analysts are beginning to recommend SMCI again, noting it is relatively cheap compared to peers like CoreWeave and NVIDIA [2] - The stock has declined approximately 4.6% since a recent comment made by Jim Cramer regarding its investment potential [2] Group 2 - There are other AI stocks that are perceived to offer greater upside potential and lower downside risk compared to SMCI [3] - The company specializes in modular server and storage systems, along with management software and deployment services for AI and data-center applications [2]

Core Insights - Super Micro Computer (SMCI) has commenced bulk deliveries of NVIDIA's (NVDA) Blackwell Ultra solutions [1] - The company is currently delivering NVIDIA HGX B300 systems and GB300NVL72 racks with plug-and-play (PnP) capabilities to global customers [1] - In early June, Super Micro Computer launched a series of enterprise-level AI solutions specifically designed for NVIDIA's Blackwell architecture, aimed at accelerating AI factory deployments in the European market [1] Market Reaction - As of the report, Super Micro Computer's stock rose by 4.10% in after-hours trading [2]

Core Viewpoint - Super Micro Computer, Inc. (SMCI) has initiated shipments of its NVIDIA Blackwell Ultra solutions, leading to a rise in its stock price during extended trading hours. Group 1: Company Developments - Supermicro announced the broad availability of its Plug-and-Play (PnP)-ready NVIDIA HGX B300 systems and GB300 NVL72 racks to customers globally [1][2] - The solutions are designed for rapid deployment and are pre-validated at system, rack, and data center scale, ensuring high performance and compute density for AI infrastructure [2][3] Group 2: Leadership Insights - Charles Liang, CEO of Supermicro, emphasized the company's strong track record in fast and successful deployments of new NVIDIA technologies [2] - Liang also highlighted the importance of Supermicro's Data Center Building Block Solutions in delivering high-performance AI platforms for customers investing in advanced technology [3] Group 3: Stock Performance - SMCI shares increased by 4.28%, reaching $45.83 during Thursday's extended trading session [3]

Core Insights - Supermicro has announced the broad availability of its NVIDIA Blackwell Ultra solutions, including Plug-and-Play (PnP)-ready NVIDIA HGX B300 systems and GB300 NVL72 racks, aimed at enhancing AI infrastructure deployment globally [1][2][5] Product Offerings - The NVIDIA Blackwell Ultra systems are designed for high performance and compute density, featuring advanced cooling designs and the ability to utilize up to 1400W per GPU, achieving 50% greater inferencing performance and 50% more HBM3e capacity compared to previous models [2][3] - Supermicro's complete Blackwell Ultra portfolio includes over 10 SKUs, enabling diverse AI factory environments at any scale [5][6] Technological Advancements - The solutions leverage direct liquid cooling technology, advanced air cooling, and optimized I/O design, which contribute to doubling compute network bandwidth and enhancing AI factory productivity [3][4] - The GB300 NVL72 rack-scale system achieves 1.1 exaFLOPS dense FP4 compute performance, while the NVIDIA HGX B300 systems provide up to 7.5x performance gains over NVIDIA Hopper-based systems [4][6] Deployment and Integration - Supermicro offers turn-key delivery of pre-validated solutions at system, rack, and data center scale, addressing challenges in AI infrastructure such as network topology, power delivery, and thermal management [2][6] - The integration of hardware with infrastructure and application software, including NVIDIA AI Enterprise, optimizes AI performance and supports rapid deployment [6] Environmental Impact - Supermicro's Data Center Building Block Solutions (DCBBS) help customers save up to 40% power, reduce data center footprint by 60%, and decrease water consumption by 40%, leading to a 20% lower total cost of ownership (TCO) [6]