Lumentum Holdings Inc. (LITE) delivered impressive first-quarter financial results, exceeding both revenue and earnings per share expectations. The company also issued robust second-quarter guidance, fueled by strong demand in the datacom market, particularly for 200G EML orders. This positive news sent Lumentum shares soaring by 13.2% on Friday, prompting several analysts to revise their price targets upwards.
Crusoe Energy, a data center startup specializing in artificial intelligence (AI) infrastructure, has secured a massive $500 million equity investment led by Peter Thiel’s Founders Fund. The investment round values Crusoe at approximately $3 billion, highlighting the rapid growth of the ‘neocloud’ industry and its increasing appeal to Silicon Valley and Wall Street investors.
Super Micro Computer, Inc. (SMCI) has added new high-performance GPU, multi-node, and rackmount systems to its X14 server portfolio, leveraging Intel’s Xeon 6900 series processors. These new systems aim to create the industry’s broadest range of optimized servers supporting various workloads, including AI, HPC, media, virtualization, and cloud-native applications. The expansion positions Supermicro as a key player in the growing AI infrastructure market.
Elon Musk, CEO of Tesla, expressed his dissatisfaction with the term “GPU” during the company’s first-quarter earnings call. He stated that Tesla’s core AI infrastructure is no longer training-constrained, with the company actively expanding its infrastructure. Tesla has installed 35,000 H100 computers or GPUs and anticipates reaching 85,000 by year-end. Despite the revenue miss in the first quarter, Musk emphasized the efficient use of H100s. Nvidia’s H100 chip continues to experience high demand, with customers facing wait times due to supply constraints.
Despite concerns about an air pocket in AI infrastructure development, JPMorgan analysts believe it’s premature to rotate out of artificial intelligence stocks. The recent decline in tech stock prices has led to a sell-off in AI-leveraged companies, but JPMorgan believes the long-term drivers of AI spending remain intact. The bank cautions against rotating into non-AI sectors based on hopes of a recovery, as current data and earnings reports do not yet support such a move.
