Super Micro Computer experienced a significant stock price increase following a preliminary business update released on Tuesday. The server manufacturer announced that its gross margin and adjusted gross margin for the June quarter would range between 15% and 17%, substantially exceeding the previously guided range of 8.2% to 8.4% provided in May.
The company attributed the margin expansion primarily to a favorable customer and product mix. The revision reflected strong demand for servers equipped with Nvidia graphics processing units designed to power artificial intelligence applications. This strength in AI-related server demand extended across the sector, with competitor Dell’s stock rising 5% in after-hours trading and Hewlett Packard Enterprise gaining 4% on the same day.
Super Micro reported that it had secured record backlog levels at the conclusion of its fiscal year on June 30. The company received over $60 billion in new orders during the fiscal fourth quarter, with these orders expected to be fulfilled across subsequent quarters. For the June quarter itself, the company anticipated revenue at the low end of its previous guidance range of $11.0 billion to $12.5 billion, slightly below the $11.67 billion that analysts surveyed by LSEG had projected.
The CEO’s recent public statements highlighted major infrastructure projects, including plans to build an additional AI datacenter facility with SpaceX and XAI within a year. The company scheduled an earnings call for Aug. 11 to discuss detailed financial results and outlook.
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