Super Micro shares rise as strong margins and AI-server demand outweigh soft revenue

Super Micro Computer Inc. shares rose about 9% in premarket trading after the AI-server manufacturer reported fiscal fourth-quarter revenue of approximately $11.1 billion and non-GAAP gross margin of roughly 17.6%, up from 9.6% a year earlier, and forecast fiscal first-quarter revenue of $14.5 billion-$15.5 billion, above the $11.8 billion consensus. Needham analyst Quinn Bolton raised his price target to $46 from $40 with a Buy rating, while JPMorgan upgraded the stock to Neutral from Sell with a $45 target, citing strong demand but caution on margin durability.

Super Micro shares rise as strong margins and AI-server demand outweigh soft revenue - Super Micro reported fiscal fourth-quarter revenue of about $11.1 billion and non-GAAP gross margin of roughly 17.6%, according to coverage of the company’s results. 1 https://www.reddit.com/r/SMCIDiscussion/comments/1v1skks/earnings are out/ - The company guided fiscal first-quarter revenue to $14.5 billion-$15.5 billion, above the $11.8 billion consensus midpoint cited by MarketWatch. 2 https://www.marketwatch.com/story/super-micro-stock-is-rallying-after-results-heres-what-wall-street-is-saying-631e9253?mod=mw rss topstories - Needham remains bullish with a $46 price target, while JPMorgan’s recent upgrade to Neutral and $45 target reflects continued caution about margin durability. 3 https://www.tipranks.com/news/super-micro-computer-stock-smci-jumps-8-on-jpmorgans-rating-upgrade Super Micro Computer shares climbed about 9% in premarket trading on Wednesday after the AI-server manufacturer posted a sharp improvement in profitability and forecast fiscal first-quarter revenue well above Wall Street expectations. 2 https://www.marketwatch.com/story/super-micro-stock-is-rallying-after-results-heres-what-wall-street-is-saying-631e9253?mod=mw rss topstories The company reported roughly $11.1 billion in fiscal fourth-quarter revenue and non-GAAP gross margin of about 17.6%, compared with 9.6% a year earlier, according to market coverage of the results. 1 https://www.reddit.com/r/SMCIDiscussion/comments/1v1skks/earnings are out/ Demand is strong; margins remain the debate Super Micro’s July preliminary update had already pointed to the reason for the market’s reaction: fourth-quarter revenue was expected near the low end of its $11.0 billion-$12.5 billion range, but gross margin was projected at 15%-17%, well above the 8.2%-8.4% guidance issued previously. The company attributed the improvement to customer and product mix and said fourth-quarter new orders exceeded $60 billion. 4 https://ir.supermicro.com/news/news-details/2026/Supermicro-Provides-Fourth-Quarter-of-Fiscal-Year-2026-Preliminary-Business-Update/default.aspx The first-quarter outlook now calls for $14.5 billion-$15.5 billion in revenue, compared with a consensus midpoint of $11.8 billion, according to MarketWatch. That forecast suggests continued demand for Nvidia-based AI systems and other data-center infrastructure, while the margin gain gives investors a more favorable starting point for fiscal 2027. 2 https://www.marketwatch.com/story/super-micro-stock-is-rallying-after-results-heres-what-wall-street-is-saying-631e9253?mod=mw rss topstories Analysts are still divided over how much of the margin improvement can persist. Needham analyst Quinn Bolton raised his target to $46 from $40 and kept a Buy rating after the preliminary update. JPMorgan separately upgraded Super Micro to Neutral from Sell and raised its target to $45 from $35, citing better revenue prospects while maintaining concerns about competitive pricing and future margin pressure. 3 https://www.tipranks.com/news/super-micro-computer-stock-smci-jumps-8-on-jpmorgans-rating-upgrade Companies mentioned Further sources 1 Market coverage reported Super Micro’s fiscal fourth-quarter revenue at approxi… ↗ https://www.reddit.com/r/SMCIDiscussion/comments/1v1skks/earnings are out/ 2 MarketWatch reported that Super Micro shares were up about 9% in premarket trad… ↗ https://www.marketwatch.com/story/super-micro-stock-is-rallying-after-results-heres-what-wall-street-is-saying-631e9253?mod=mw rss topstories 3 Needham raised its price target to $46 from $40 while maintaining Buy; JPMorgan… ↗ https://www.tipranks.com/news/super-micro-computer-stock-smci-jumps-8-on-jpmorgans-rating-upgrade 4 Super Micro’s July 21 preliminary business update said fourth-quarter revenue w… ↗ https://ir.supermicro.com/news/news-details/2026/Supermicro-Provides-Fourth-Quarter-of-Fiscal-Year-2026-Preliminary-Business-Update/default.aspx The stories that matter, in one email. Free — unsubscribe anytime.