Super Micro (NASDAQ: SMCI) stock jumped 15% Tuesday after the company significantly increased its gross margin guidance for the fourth quarter.
The server maker reported over $60 billion in new orders for the quarter that ended June 30. While revenue estimates remained near previous projections between $11 billion and $12.5 billion, the higher profit margin outlook drove investor enthusiasm.
Margin Growth Fueled by Customer and Product Mix
Super Micro now anticipates a gross margin and adjusted gross margin ranging from 15% to 17%, an upward revision from the 8.2% to 8.4% forecast issued in May. The company attributed this improvement mainly to a favorable mix of customers and products.
Demand for AI servers remains solid, particularly for systems powered by Nvidia (NASDAQ: NVDA) graphics chips, which support AI training and inference workloads. This strong demand contributed to the record-high order book at the fiscal year-end.
CEO Charles Liang revealed on X that Super Micro helped build a gigawatt-scale AI data center for SpaceX and xAI. SpaceX acquired Elon Musk’s xAI via a stock-only acquisition earlier this year, forming the combined entity SpaceXAI.
The ongoing spending surge has benefited other server companies as well, with Dell Technologies (NYSE: DELL) shares rising 5% after the market close and Hewlett Packard Enterprise (NYSE: HPE) gaining 4%.
This article is for informational purposes and not investment advice.
