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Why is SMCX Up Today After AI Announcement

The Defiance Daily Target 2X Long SMCI ETF (SMCX) surged 15.86% to close at $38.14 on February 5th, driven by significant developments in Super Micro Computer Inc.'s business. Super Micro Computer's stock rose 8% after announcing the full production availability of its AI data center systems powered by Nvidia's advanced Blackwell chips. This announcement alleviated concerns about demand for Nvidia's chips and boosted confidence in Super Micro's AI server sales. The news comes as a relief for Super Micro, which has been under scrutiny due to an accounting controversy and a looming Nasdaq delisting risk. The company's ability to ramp up production of its AI data center solutions marks a positive turn amid these challenges.