Super Micro Shares Surge After Cisco AI Partnership

Super Micro Computer shares rose 9.4% on Tuesday after the company announced a partnership with Cisco to provide liquid-cooled, rack-scale AI solutions. Cisco is integrating Super Micro's liquid-cooled Nvidia AI racks into its Secure AI Factory architecture portfolio, a move viewed as a validation of the company's technology and compliance standards.

The rally follows a sharp decline on Monday caused by indictments from Taiwanese authorities. Nine individuals, including two Super Micro employees and one Nvidia employee, were charged with attempting to smuggle AI servers to China in violation of U.S. export restrictions. Super Micro stated it was not a defendant in the smuggling scheme and is cooperating with authorities.

In a separate financial update, the company reported strong fourth-quarter results with revenue increasing 93% year-over-year. Super Micro provided bullish fiscal 2027 revenue growth guidance of 66–84%, although the company continues to face investor concerns regarding corporate governance and negative free cash flow.