Super Micro Computer secures $60 billion in orders as gross margins nearly double on AI boom
8 Sources
[1]
Super Micro says fourth-quarter orders topped $60 billion
July 21 (Reuters) - Super Micro Computer (SMCI.O), opens new tab said on Tuesday it has received orders in excess of $60 billion in the fourth quarter, helped by growing demand for its advanced AI servers, sending the company's shares up 16% in extended trading. AI infrastructure firms have seen
[2]
Super Micro surges 15% on new order and margin disclosure after SpaceX announcement
Shares of Super Micro Computer jumped 15% after the server maker said Tuesday it now sees higher margins than previously projected for the June quarter, with a surge in new orders. The company said its gross margin and adjusted gross margin should come in between 15% and 17%, a step up from the
[3]
AI server maker Supermicro's stock gains on $60B order backlog and stronger margins
Artificial intelligence server maker Super Micro Computer Inc. told investors in a preliminary earnings forecast today that it has secured more than $60 billion worth of new orders for its products in its fiscal fourth quarter. As a result, it now expects its gross margin to significantly exceed
[4]
SMCI's record $60B order book and what it means for Nvidia By Investing.com
Investing.com -- Super Micro Computer Inc's Q4 preliminary results sent its shares up over 20%, but the real shocker is the near doubling of gross margin guidance -- an AI-fueled turnaround that could ripple straight to NVIDIA Corporation. Why? Because Super Micro's record $60B in new orders
[5]
Super Micro surges after highly reassuring numbers for its latest quarter
In an update released Tuesday evening, the San Jose, California-based group said revenue for the latest quarter, ended in late June, should come in near the low end of its target range, which ran from $11bn to $12.5bn. By contrast, it said it expects gross margin, under both reported and non-GAAP
[6]
Super Micro surges after highly reassuring figures for its latest quarter
In this update released Tuesday evening, the San Jose, California-based group said revenue for the latest quarter, ended in late June, should come in near the low end of its target range, which ran from $11 to $12.5bn. By contrast, it said it expects gross margin, on both a reported basis and in
[7]
Super Micro tops $60bn in orders on demand for next-generation AI servers
The company is benefiting from accelerating investment by major technology groups and cloud service providers, which are ramping up computing capacity to meet the growth of artificial intelligence applications and large language models. That momentum is supporting demand for the highest-performance
[8]
Super Micro tops $60bn in orders as demand for AI servers surges
The company is benefiting from accelerating investment by major technology groups and cloud service providers, which are expanding their computing capacity to keep up with the growth of artificial intelligence applications and large language models. This momentum is supporting demand for the
Share
Copy Link
Super Micro Computer reported over $60 billion in new orders for its fourth quarter, sending shares up 16% in extended trading. The AI server maker now expects gross margins between 15% and 17%, nearly double its previous forecast of 8.2% to 8.4%, driven by strong demand for advanced AI infrastructure from tech companies and cloud providers building data centers.
Super Micro Computer Reports Record Order Book Amid AI Infrastructure Surge
Super Micro Computer disclosed Tuesday that it received orders exceeding $60 billion in its fourth quarter ended June 30, a figure that sent the company's shares soaring 16% in extended trading and signaling robust AI infrastructure demand across the technology sector
1
. The record order book, which represents nearly triple the AI server maker's annual revenue, reflects accelerating investments by tech companies and cloud providers in data centers designed to support large language models and other AI applications3
.
Source: Reuters
The preliminary business update revealed that the company's order backlog had grown to "record levels" at the end of fiscal 2026, positioning Super Micro Computer alongside rivals Dell and HPE as key beneficiaries of the AI boom
2
. Dell stock moved up 5% in extended trading following the announcement, while HPE gained 4%, suggesting broader optimism about demand for AI-related servers across the industry2
.Gross Margins Nearly Double on Favorable Customer and Product Mix
The most striking aspect of Super Micro Computer's update was the dramatic revision to its gross margins forecast. The company now expects adjusted gross margins between 15% and 17% for the quarter, significantly higher than its May forecast of 8.2% to 8.4%
1
. Management attributed this improvement primarily to a favorable customer and product mix, driven by success of its most advanced AI solutions5
.Wedbush analysts suggested that Super Micro Computer likely capitalized on supply shortages in the AI server market to secure better pricing or steer customers toward more premium server configurations incorporating proprietary technologies
5
. Industry observers have noted consistent reports that demand for AI-related products including Grace Blackwell, Blackwell, and Hopper architectures is outstripping supply, creating conditions where shipments of high-margin AI servers remain below demand5
.SpaceX and Major Customer Wins Drive Advanced AI Solutions Demand
Super Micro Computer's relationship with major customers has strengthened considerably. In June, CEO Charles Liang announced on X that the company was "proud to co-build another new Gigawatt AI datacenter for SpaceX and xAI within a year," referencing projects with Elon Musk's companies
2
.
Source: SiliconANGLE
The company has benefited from extremely close relationships with Nvidia and AMD, allowing it to manufacture some of the most integrated AI servers on the market
3
.The $60 billion order backlog represents a substantial increase from the $39 billion backlog Super Micro Computer reported just over a month ago when it announced plans to raise $7 billion via equity and equity-linked financing transactions
3
. The company said those proceeds would speed up fulfillment of advanced AI servers orders from more than 20 customers3
.Related Stories
Implications for Nvidia and the Broader AI Supply Chain
Super Micro Computer's record order book serves as a real-time indicator of hyperscale AI buildout appetite, with direct implications for NVIDIA Corporation, whose chips are the backbone of Super Micro's high-density AI servers
4
. The blowout order book suggests Nvidia's downstream demand remains robust even as global AI competition intensifies4
. Super Micro Computer's margin expansion hints at easing supply chain costs and possible pricing power, both positive signals for Nvidia's own margins and revenue4
.However, not every order is guaranteed, with management flagging potential cancellations, and the company faces headwinds including an ongoing DOJ indictment of a co-founder, the planned $7 billion equity raise representing 42% of market cap, negative levered free cash flow, and a debt-to-equity ratio of 80.3%
4
. Despite Tuesday's gains, Super Micro Computer's stock remains down more than 16% over the past month following negative investor reaction to the funding deal announcement3
.What to Watch in Coming Quarters
Super Micro Computer expects fourth-quarter revenue near the low end of its $11 billion to $12.5 billion forecast range, potentially suggesting a slight revenue miss or narrow beat against analyst forecasts of $11.67 billion
3
. Investors will receive full quarterly and full-year results on August 11, when the critical question will be whether those new orders convert to actual revenue4
. Nvidia's August 26 earnings will provide additional commentary on AI server demand and margin trends across the supply chain4
. Wedbush analysts noted that delays in data center construction for certain major customers could have contributed to revenue weakness while benefiting product mix, suggesting infrastructure buildout timing remains a key variable to monitor5
.References
Summarized by
Navi
[5]
Related Stories
Super Micro Computer Stock Surges 7% on Crushing Earnings Beat and $65-72B Revenue Guidance
11 Aug 2026•Business and Economy
Super Micro Computer beats revenue forecast on AI servers demand, shares surge 17%
06 May 2026•Business and Economy
Super Micro Computer's AI Ambitions and Financial Challenges: A Tale of Growth and Uncertainty
06 Feb 2025•Business and Economy
Recent Highlights
1
AI Leaders Warn UN Security Council of Existential Risks, Call for Global AI Governance
Policy and Regulation
2
AI Hallucination Nearly Sparked US Military Confrontation With Chinese Ship in Middle East
Technology
3
OpenAI AI Agent Breaches Australian Government Healthcare Portal in Historic Hack
Technology
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
