Supermicro stock jumps on gross margin raise amid record $60 billion backlog

Supermicro stock jumped 18% in after-hours trading Tuesday after the AI server maker announced it expects gross margins to nearly double, citing a record order backlog. The company reported total new orders in excess of $60 billion received during the fourth quarter of fiscal 2026 and guided gross margins of 15% to 17%, up from prior guidance of 8.2% to 8.4%.

What happened: Supermicro SMCI https://finance.yahoo.com/quote/SMCI/ stock jumped 18% in after-hours on Tuesday. What's behind the move: The AI server maker announced it expects gross margins to nearly double as it works through a record order backlog in the coming quarters. "Backlog rose to record levels at the end of fiscal 2026 with total new orders in excess of $60 billion received during the fourth quarter of fiscal 2026," said the company in its business update. Supermicro said it expects its gross margin to be in the range of 15% to 17%, significantly higher than the company's prior guidance of 8.2% to 8.4%, "primarily due to a favorable customer and product mix." What else you need to know: Supermicro designs and builds servers and data center systems that incorporate semiconductors from chip makers including Nvidia NVDA https://finance.yahoo.com/quote/NVDA , Intel INTEL https://finance.yahoo.com/quote/INTEL , and AMD AMD https://finance.yahoo.com/quote/AMD/ . Last month, Supermicro CEO Charles Liang congratulated Elon Musk for SpaceX's IPO, revealing that the company was co-building "another new Gigawatt AI datacenter for @SpaceX https://x.com/SpaceX and @XAI https://x.com/XAI within a year " Despite the AI boom, the stock has had a volatile ride in recent months. Year-to-date shares are down 17% after tumbling in June following an announcement of an equity raise https://finance.yahoo.com/markets/stocks/article/supermicro-computer-stock-sinks-on-7-billion-equity-raise-124041144.html to purchase components to fulfill $39 billion in AI server orders. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines ferre . Click here for in-depth analysis of the latest stock market news and events moving stock prices Read the latest financial and business news from Yahoo Finance