Super Micro Computer saw its shares rise following a preliminary business update in which the company raised its margin expectations for the June quarter. The server manufacturer indicated its gross margin and adjusted gross margin would fall between 15% and 17%, representing a significant increase from the 8.2% to 8.4% range previously communicated in May.
The company attributed the margin improvement to favorable shifts in customer and product mix. Super Micro has benefited from sustained demand for servers equipped with Nvidia graphics processing units designed to support artificial intelligence applications, a trend that has also buoyed competitors Dell Technologies and Hewlett Packard Enterprise. Dell’s stock advanced 5% in after-hours trading following the announcement, while HPE climbed 4%.
For the June quarter, Super Micro now projects revenue at the lower end of its prior guidance range of $11.0 billion to $12.5 billion, positioning results below analyst expectations of $11.67 billion according to LSEG-compiled consensus estimates. The company reported achieving record backlog levels at the close of its 2026 fiscal year on June 30, with new orders exceeding $60 billion in the fourth quarter alone. Management noted these orders are anticipated to be fulfilled across subsequent periods.
The positive momentum comes as Super Micro CEO Charles Liang has publicized the company’s involvement in datacenter infrastructure projects, including work with SpaceX and related entities. An earnings call is scheduled for Aug. 11, when the company will provide additional details on quarterly results.
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