AI server maker Supermicro’s stock gains on $60B order backlog and stronger margins
Artificial intelligence server maker Super Micro Computer Inc. told investors in a preliminary earnings forecast today that it has secured more than $60 billion worth of new orders for its products in its fiscal fourth quarter. As a result, it now expects its gross margin to significantly exceed its prior forecast.
The news sent shares of the server maker soaring more than 19% in extended trading.
Server makers like Supermicro, Dell Technologies Inc. and Hewlett-Packard Enterprise Co. have emerged as some of the beneficiaries of the AI boom outside of prominent chipmakers like Nvidia Corp. Demand for their products has surged as enterprises and cloud infrastructure providers alike scramble to ramp up their investments in the hardware needed to run massive numbers of large language models and other intelligent applications.
In the case of Supermicro, it has benefitted from having an extremely close relationship with Nvidia and another chipmaker, Advanced Micro Devices Inc., which allows it to manufacture some of the most integrated AI servers on the market.
Supermicro, which is led by its Chief Executive Charles Liang (pictured), told investors that it’s now expecting gross margins of between 15% and 17% in the quarter ended June 30, well ahead of its prior forecast range of just 8.2% to 8.4%. The company said the more optimistic forecast is “primarily due to a favorable customer and product mix.”
Officials added that Supermicro’s backlog had grown to “record levels” at the end of its fiscal 2026 year, which is another reason to be optimistic over its future prospects.
The company also said it’s expecting its fourth-quarter revenue to be closer to the lower end of its $11 billion to $12.5 billion forecast range. That could suggest a slight revenue miss, or maybe a narrow beat, with analysts forecasting $11.67 billion. Investors will find out for sure on August 11, when the company posts its full quarterly and full-year results.
Supermicro made more headlines just over a month ago when it told investors it’s planning to raise $7 billion via a series of equity and equity-linked financing transactions. The idea was to use the proceeds of those deals to speed up the fulfillment orders for advanced AI servers from more than 20 customers. That order backlog was valued at more than $39 billion, the company said at the time.
Investors reacted negatively to the news of the funding deal, sending Supermicro’s stock into a tailspin, and even with today’s after-hours gains it has not fully recovered. The stock is down more than 16% in the last month.
Photo: Supermicro
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