NEW YORK, December 31, 2025, 14:55 ET — Regular session
- Super Micro Computer shares fell about 1.7% to $29.16 in afternoon trading.
- A Form 8-K disclosed the retirement of operations SVP George Kao, with Tom Xiao set to assume his responsibilities.
- Reuters reported xAI bought a third building to expand AI compute capacity, keeping attention on AI infrastructure spending.
Super Micro Computer, Inc. (SMCI) shares were down about 1.7% at $29.16 by 2:55 p.m. ET on Wednesday, after trading between $29.12 and $29.86 on about 15.4 million shares. In a Form 8-K — a disclosure companies file to flag major events — the server maker said Senior Vice President of Operations George Kao will retire on Dec. 31 and that Tom Xiao, a senior engineering executive, will take over. Super Micro said it does not expect the change to disrupt operations and that Kao will remain as a consultant, with terms to be disclosed later. 1
The leadership shift lands as investors weigh whether Super Micro can steady execution after a volatile year for AI hardware. Operations leadership matters for a company that builds dense, custom servers where manufacturing schedules and component availability can make or break quarterly results.
Customer demand is also in the spotlight after Reuters reported that Elon Musk’s xAI bought a third building to expand its AI computing footprint, targeting nearly two gigawatts of training capacity and a Colossus cluster of at least 1 million GPUs. “xAI has bought a third building called MACROHARDRR,” Musk wrote on X, according to Reuters. 2
Super Micro has highlighted its role supplying liquid-cooled systems to xAI’s Colossus cluster, saying the project uses networking to connect 100,000 Nvidia Hopper graphics processing units, or GPUs — chips commonly used to train AI models. That linkage means headlines around new data-center builds can ripple quickly through server makers’ shares. 3
Wall Street’s main indexes were modestly lower in light trading on the final day of 2025, adding to caution around high-growth technology names. 4
Dell Technologies, another major supplier of AI servers, fell about 1.2%, while Nvidia was little changed and Hewlett Packard Enterprise slipped about 0.7%. The mixed tape left Super Micro’s move looking more company-specific than sector-wide.
Super Micro has been under scrutiny since it reported quarterly results in early November that missed expectations and pointed to delayed deliveries tied to design changes, Reuters reported at the time. The company’s ability to ship on schedule has remained a core focus for investors who view the stock as a levered bet on AI-server build-outs. 5
Wednesday’s filing did not include new financial targets, but it reinforced how closely investors are watching execution signals — from production capacity to delivery timelines — as big AI customers scale up. Any hiccup can show up quickly in gross margin, a measure of profit after production costs.
Investors will also look for the promised amendment describing Kao’s consulting arrangement and any further detail on how the operations function is being handed off. The next earnings report will be another test for shipment timing and profitability.
Attention is likely to stay on customer capital spending in 2026, especially among companies building large AI training clusters. For Super Micro, the swing factor is whether those projects translate into higher-volume shipments that still meet quality and delivery requirements.
Liquid cooling is becoming a bigger theme for high-density AI racks because it can dissipate more heat than traditional air cooling. Super Micro has positioned itself as a supplier of liquid-cooled “superclusters,” meaning many GPU-packed racks shipped as a single integrated system.
With the stock hovering near $30, investors are looking for steadier execution and clearer demand signals into the new year. Until then, filings and customer build-out headlines are likely to remain the primary near-term catalysts for SMCI shares.
