Super Micro stock up over 15% on new orders and margin update
Server manufacturer Super Micro Computer announced Tuesday it expects higher margins than previously projected for the June quarter and has secured over $60 billion in new orders.
San Jose, California – Super Micro Computer's stock surged over 15% after the server maker announced on Tuesday that it now expects higher gross margins than previously projected for the June quarter, alongside a significant boost in new orders.
The company now anticipates its gross margin and adjusted gross margin for the quarter ending in June to fall between 15% and 17%. This represents a substantial increase from the 8.2% to 8.4% range provided in May. Furthermore, Super Micro reported receiving over $60 billion in new orders, which are expected to be delivered over future quarters.
Super Micro attributed the improved margin to a "favorable customer and product mix." While the company expects its revenue to be at the lower end of its guidance range of $11.0 billion to $12.5 billion, the higher margins provided a lift to the stock. Competitors Dell and Hewlett Packard Enterprise also saw their shares advance following the announcement.
In June, Super Micro CEO Charles Liang had previously posted on social media about co-building a new "Gigawatt AI datacenter" for SpaceX and XAI within a year. Demand for AI servers, particularly those equipped with Nvidia graphics processing units, has been robust for Super Micro and its rivals.
The company is scheduled to hold its earnings call on August 11. Super Micro's backlog reached record levels at the end of its fiscal year 2026, which concluded on June 30.