Super Micro Computer shares climbed 9.15% to $35.44 in Wednesday trading after the company delivered a preliminary business update that blew past its own prior guidance. The AI server maker said Tuesday it now expects fiscal first-quarter revenue of $18.5 billion to $19.5 billion, up sharply from its earlier range of $14.5 billion to $15.5 billion and well above the $14.916 billion analysts had penciled in. Gross margins for the quarter, which ended September 30, are expected to land between 12% and 12.5%.
The update, covering the first quarter of fiscal year 2027, triggered an immediate reaction across markets. Shares jumped in after-hours trading Tuesday following the announcement and extended those gains into Wednesday's premarket session before the stock opened higher. Super Micro has scheduled its earnings call for November 3rd at 5 p.m. EST, when fuller results are expected. The stronger outlook also rippled into other AI infrastructure names, with Dell Technologies shares climbing in premarket trading and Asian chipmakers rallying on renewed optimism about AI spending.
The rally marks a sharp reversal for a stock that had been under pressure heading into the update. Super Micro shares had fallen 16.89% over the prior five trading days and were down 19.35% over the last 30 trading days, leaving the stock well off its 52-week high of $56.60 and closer to its 52-week low of $19.48. The revenue beat also follows a period in which the company fielded questions tied to a smuggling case involving a contractor who pleaded guilty to helping ship servers loaded with advanced Nvidia chips to China, a matter Super Micro has said did not name the company directly.
Not every reaction to the update was unreserved enthusiasm. BofA noted that while Super Micro is seeing rising AI demand and revenue growth, the company also faces margin pressure, a tension investors will likely watch closely when full results and management commentary arrive on the November 3rd call. Separately, Super Micro also announced a collaboration with Nokia and Nvidia aimed at bringing AI computing to 5G networks, with an eye toward AI-native 6G expansion, adding another storyline to watch alongside the margin question as the company works toward its formal earnings report.