Shares of artificial intelligence (AI) server specialist Super Micro Computer (SMCI +2.14%) rallied 10.2% on Monday.
Supermicro was named as a partner of choice in a press release from new private AI data center company Digi Power X, which filed a patent today for its modular AI data center solution. As part of the press release on the patent filing, Digi Power X noted it was ordering Nvidia (NVDA +2.71%) B200/B300 GPUs exclusively through Supermicro.
NASDAQ: SMCI
Key Data Points
What is Digi X?
Digi Power X issued a press release today saying that it had filed a provisional utility patent application for its new ARMS 200 modular data center platform. Supermicro was named as the exclusive server supplier, with an order projected for the fourth quarter of 2025.
Digi X is a recently formed company that aims to retrofit existing energy assets that may be underutilized in remote parts of the country, and parlay those assets into powering new AI data centers. Essentially, Digi X aspires to be a new neocloud along the lines of CoreWeave or Nebius.
However, Digi X is smaller right now, and apparently is looking for a lower-cost way to enter the space, identifying itself as a "Tier III" provider of Nvidia GPUs. The flagship project for the company and Supermicro will be in Columbiana, Alabama, with a launch date of Q1 2026.
Image source: Getty Images.
Did Supermicro deserve to rise this much?
The Digi Power X project doesn't appear to be that big, or at least not big enough to justify such a move in Supermicro's stock in and of itself. However, the selection of Supermicro as the exclusive server provider suggests the company may have leading, high-value technology with new Nvidia Blackwell systems.
Like Digi Power X, Supermicro has also been touting its own modular "Data Center Building Block Solutions (DCBBS)" technology as a game changer, which sounds somewhat aligned with the "modular" ARMS technology from Digi Power X. So, this project may be using the new technology.
Interested investors should be attuned to more technology and financial updates from Supermicro CEO Charles Liang when the company reports earnings on Aug. 5.
