Super Micro shares jump as margin forecast comes roaring back
The AI server company said fiscal fourth-quarter gross margins should land at 15% to 17%, far above its prior 8.2% to 8.4% outlook.
By Sal Moretti · Money Reporter
3 min read
Super Micro Computer gave Wall Street the margin surprise it had been waiting for Tuesday, saying its fiscal fourth-quarter gross margins are now expected to come in at nearly twice the level it previously forecast.
The AI server maker said in a preliminary business update that GAAP and non-GAAP gross margins for the quarter should be between 15% and 17%. Its earlier guidance called for margins of 8.2% to 8.4%.
Super Micro attributed the jump to a more favorable mix of customers and products. Investors moved fast: MarketWatch reported that Super Micro shares were up 19% in after-hours trading following the update.
The company also said it received more than $60 billion in new orders during the quarter, which it described as a record. That figure pointed to continued demand for its modular data-center systems as companies spend heavily on artificial-intelligence infrastructure.
The upbeat margin news helped offset a softer note in the update. Super Micro said fourth-quarter revenue is expected to be near the bottom of its prior guidance range of $11 billion to $12.5 billion.
Margins have been the pressure point
Super Micro’s profitability has been under close watch as the company shifts further into AI servers and broader data-center offerings. In recent quarters, it has prioritized growth and market share while absorbing the costs tied to that push.
The company’s gross margin fell to 6.3% in the second quarter of fiscal 2026. Chief Executive Charles Liang previously cited customer mix, tariffs and shortages of important components, including memory products, as factors behind the pressure.
Margins improved to 9.9% in the third quarter. The new preliminary fourth-quarter range would put Super Micro back into double-digit territory, a target Liang discussed on the company’s May earnings call.
On that call, Liang said Super Micro was working toward a sustainable double-digit gross margin by focusing on enterprise customers and its Data Center Building Block Solutions business.
A sharp mood swing for the stock
The after-hours rally followed a bruising stretch for Super Micro investors. MarketWatch reported that the stock had fallen by nearly half from its early June high.
On June 9, Super Micro announced plans to raise $7 billion in equity financing to help support a surge in AI server orders. The stock sold off after that announcement as investors weighed the risk of dilution and heavier spending.
Super Micro has been trying to move beyond its roots as a server designer and manufacturer and become a broader provider of data-center systems. The company’s latest update suggests that shift may be bringing stronger pricing and a better product mix, according to the margin forecast it released.
Liang has also pointed to major AI-related customers. In a June post on X, he wrote that Super Micro and SpaceX were working together on a new data center.
Super Micro is scheduled to release its official fiscal fourth-quarter results on Aug. 11.
This story draws on original reporting from MarketWatch.