1 min read
What happened: Supermicro (SMCI) stock jumped 12% in early trading on Wednesday, while peers Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE) gained 5% and 4%, respectively.
What’s behind the move: The AI server maker raised its fiscal first quarter revenue forecast by $4 billion, signaling stronger-than-expected demand for artificial intelligence infrastructure.
Supermicro now expects revenue of $18.5 billion to $19.5 billion for the quarter ended Sept. 30, up from its previous forecast of $14.5 billion to $15.5 billion.
The company also raised its gross margin forecast to 12% to 12.5%, compared with its previous outlook of 10.4% to 10.8%, citing a more favorable customer and product mix.
Supermicro will present its complete Q1 fiscal year 2027 financial results on Nov. 3.
32.47 +0.37 (+1.15%)
At close: October 20 at 4:00:00 PM EDT
36.65 +4.18 (+12.87%)
Pre-Market: 9:22:46 AM EDT
What else you need to know: Supermicro designs and builds servers and data center systems that incorporate semiconductors from chipmakers like Nvidia (NVDA), Intel (INTC), and AMD (AMD).
Supermicro’s update comes as investors weigh the AI trade, signaling that demand for hardware remains robust, even as questions persist about the returns on massive data-center investments.
The rally also puts AI-related stocks back in focus following SpaceX’s (SPCX) AI-driven results.
Year to date, Supermicro stock is up roughly 10%.
Ines Ferre is a senior business reporter for Yahoo Finance.
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