TLDR
- Super Micro Computer (SMCI) stock rose about 13% in premarket trading after closing Tuesday at $32.47.
- Q1 revenue is now expected at $18.5 billion to $19.5 billion, up from $14.5 billion to $15.5 billion.
- The gross margin outlook rose to 12.0% to 12.5%, from 10.4% to 10.8%.
- Dell gained 5.3% and HPE 4.5% after hours, while Nvidia, AMD, Micron and Marvell rose about 2%.
- Full fiscal first-quarter results are due November 3.
Super Micro Computer (SMCI) stock jumped about 13% in premarket trading on Wednesday. It closed Tuesday at $32.47.
Super Micro Computer, Inc., SMCI
The move came after the server maker raised its fiscal first-quarter outlook. Revenue is now expected between $18.5 billion and $19.5 billion.
The earlier forecast was $14.5 billion to $15.5 billion. The new midpoint is about $4 billion higher, or roughly 27%.
Analysts had expected revenue of $14.99 billion. The new range sits well above that number.
The quarter ended September 30. If the forecast holds, revenue would nearly quadruple from a year earlier.
Margins Also Get a Lift
Super Micro raised its gross margin outlook too. It now expects 12.0% to 12.5%, up from 10.4% to 10.8%.
The company credited a more favorable customer and product mix. Higher sales with fatter margins is a pairing investors tend to like.
Mizuho analysts pointed to ārapidly increasing server demand and agentic AI tailwinds.ā They see the update as demand driven.
The news marks a change in tone for the company. It had warned that fiscal fourth-quarter revenue would land near the low end of its range.
Peers React
Other server makers moved higher in after-hours trading. Dell Technologies gained 5.3%, and Hewlett Packard Enterprise rose 4.5%.
Chip stocks got a smaller lift. Nvidia, AMD, Micron and Marvell each added roughly 2%.
That bounce follows a rough run. The Philadelphia Semiconductor Index fell for eight straight sessions before rising 1.6% on Monday.
The index slipped 0.3% on Tuesday. Worries over debt-funded spending and higher borrowing costs have weighed on AI data-center names.
CoreWeave and Oracle were among the weaker performers last week. Barronās noted that investors are asking whether buyers of AI hardware can earn enough returns to justify the cost.
Barronās also said Super Micro could be taking business from rivals or selling pricier systems. Its results may not point to a matching rise in chip demand across the industry.
Super Micro named former Western Digital executive Mark Long as its chief financial officer last week. The company will report full fiscal first-quarter results on November 3.
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