Super Micro Computer secures $60 billion in orders as gross margins nearly double on AI boom

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 accelerated demand as tech companies and cloud providers ramp up investments in data centers to support large language models ⁠and other AI applications. The server maker expects adjusted gross margins in the range of 15% to ⁠17% for the quarter ended June 30, significantly higher than its ⁠forecast of 8.2% to 8.4%, primarily due to a ⁠favorable customer and product mix. Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber Our Standards: The Thomson Reuters Trust Principles., opens new tab

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 range of 8.2% to 8.4% that management provided in May. The revision is "primarily due to a favorable customer and product mix," Super Micro said in a preliminary business update. Demand for servers containing Nvidia graphics processing units that run artificial intelligence models has been surging for Super Micro, as well as rivals Dell and Hewlett Packard Enterprise. Dell stock moved up 5% in extended trading after hours on Tuesday, while HPE gained 4%. In June, Super Micro CEO Charles Liang wrote on X that he was "proud to co-build another new Gigawatt AI datacenter for @SpaceX and @XAI within a year." Elon Musk's SpaceX also controls the X social network.

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 its prior forecast. The news sent shares of the server maker soaring more than 19% in extended trading. Server makers like Supermicro, Dell Technologies Inc. and Hewlett-Packard Enterprise Co. have emerged as some of the beneficiaries of the AI boom outside of prominent chipmakers like Nvidia Corp. Demand for their products has surged as enterprises and cloud infrastructure providers alike scramble to ramp up their investments in the hardware needed to run massive numbers of large language models and other intelligent applications. In the case of Supermicro, it has benefitted from having an extremely close relationship with Nvidia and another chipmaker, Advanced Micro Devices Inc., which allows it to manufacture some of the most integrated AI servers on the market. Supermicro, which is led by its Chief Executive Charles Liang (pictured), told investors that it's now expecting gross margins of between 15% and 17% in the quarter ended June 30, well ahead of its prior forecast range of just 8.2% to 8.4%. The company said the more optimistic forecast is "primarily due to a favorable customer and product mix." Officials added that Supermicro's backlog had grown to "record levels" at the end of its fiscal 2026 year, which is another reason to be optimistic over its future prospects. The company also said it's expecting its fourth-quarter revenue to be closer to the lower end of its $11 billion to $12.5 billion forecast range. That could suggest a slight revenue miss, or maybe a narrow beat, with analysts forecasting $11.67 billion. Investors will find out for sure on August 11, when the company posts its full quarterly and full-year results. Supermicro made more headlines just over a month ago when it told investors it's planning to raise $7 billion via a series of equity and equity-linked financing transactions. The idea was to use the proceeds of those deals to speed up the fulfillment orders for advanced AI servers from more than 20 customers. That order backlog was valued at more than $39 billion, the company said at the time. Investors reacted negatively to the news of the funding deal, sending Supermicro's stock into a tailspin, and even with today's after-hours gains it has not fully recovered. The stock is down more than 16% in the last month.

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 signals unrelenting demand for AI infrastructure, a sector where NVIDIA's chips are the gold standard. AI Demand Chain Reaction Super Micro Computer Inc's Q4 revenue landed at the low end of guidance ($11.0B-$12.5B), but gross margins jumped to 15-17% -- almost double the historical norm. The true headline: a record $60B in new orders, nearly triple its annual revenue, driven by AI infrastructure demand. While not every order is guaranteed (management flagged potential cancellations), this backlog is a real-time readout of hyperscale AI buildout appetite, where NVIDIA Corporation is the essential supplier. * NVIDIA Corporation's chips are the backbone of Super Micro's high-density AI servers. * Super Micro's blowout order book suggests NVIDIA's downstream demand remains robust, even as global AI competition heats up. Risk and Reward -- The Fine Print But there's a twist: Super Micro Computer Inc faces several headwinds -- an ongoing DOJ indictment of a co-founder, a planned $7B capital raise (42% of market cap), negative levered free cash flow, and a debt/equity ratio of 80.3%. For NVIDIA Corporation, the key risk is not demand, but regulatory: recent news highlights tighter U.S. export controls and compliance headaches in Asia, plus a French antitrust probe nearing conclusion (Read more, 07/13/2026; Read more, 07/09/2026). Margin Surge: Who Benefits Most? Let's compare the numbers: Super Micro's margin leap is impressive, but NVIDIA's gross margins are in a league of their own -- suggesting NVIDIA captures more value per AI dollar spent. The Bottom Line * Super Micro's preliminary results are a bullish signal for NVIDIA's AI chip demand -- stronger orders at the server level mean more chips needed. * The margin expansion at Super Micro hints at easing supply chain costs and possible pricing power, both of which are positive for NVIDIA's own margins and revenue. * Risks remain: Super Micro's governance and capital structure issues could disrupt orders, and NVIDIA faces regulatory and competitive threats, especially in Asia. What to Watch Next * Super Micro's August 11 earnings call: Will those new orders convert to real revenue? * NVIDIA's August 26 earnings: Look for commentary on AI server demand and margin trends. * Ongoing regulatory headlines -- especially export controls and antitrust probes. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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 figures, between 15% and 17%, well above its prior forecast of 8.2% to 8.4%, mainly due to a favorable customer and product mix, driven by the success of its most advanced artificial intelligence solutions. In addition, Super Micro Computer estimates its order backlog reached record levels at the end of fiscal 2026, with total new orders exceeding $60bn, received during the fourth quarter and set to be delivered over the coming quarters. "'We certainly did not anticipate the increase in SMC's gross margin," Wedbush acknowledges. It has a 'neutral' rating on the stock with a TP of $34, and offers several explanations for the beat. A favorable industry backdrop, according to Wedbush The broker says it has gathered consistent comments in recent weeks showing that demand for AI-related products (Grace Blackwell, Blackwell and even Hopper), compute capacity, memory, and more is outstripping supply and that, as a result, shipments of high-margin AI servers remain below demand. In turn, Wedbush believes SMC likely took advantage of the shortage to secure better pricing and/or steer customers toward a more premium server lineup, for example solutions incorporating more proprietary technologies. "Lastly, we would not be surprised if the revenue weakness is explained by delays in data center construction for certain major SMC customers, a factor that would also have benefited its product mix," the analyst adds. "In addition, the sharp increase in SMCI's backlog supports our information regarding sizable future data center orders, which are driving a substantial increase in the need for standard industry components over the coming year," he adds.

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 non-GAAP terms, to be between 15% and 17%, well above its prior forecast of 8.2% to 8.4%, mainly due to a favorable customer and product mix, underscored by the success of its most advanced solutions dedicated to artificial intelligence. In addition, Super Micro Computer estimates its order backlog reached record levels at the end of fiscal 2026, with total new orders topping $60bn, received during the fourth quarter and scheduled to be delivered over the coming quarters. 'We certainly did not anticipate SMC's gross margin upside,' Wedbush acknowledges, which has a 'neutral' rating on the stock with a $34 price target, and offers some explanation for the beat versus expectations. A favorable industry backdrop, according to Wedbush The research firm says it has gathered, in recent weeks, consistent feedback showing that demand for AI-related products (Grace Blackwell, Blackwell and even Hopper), compute capacity, memory, and so on, is outstripping supply and that, as a result, shipments of high-margin AI servers remain below demand. In turn, Wedbush believes SMC likely managed to take advantage of the shortage to command more favorable pricing and/or steer customers toward a higher-end server lineup, for example solutions incorporating more proprietary technologies. 'Finally, we would not be surprised if the revenue weakness is explained by delays in data center construction for some of SMC's large customers, a factor that would also have benefited its product mix,' the analyst adds. 'Moreover, the sharp increase in SMCI's backlog corroborates our channel checks regarding significant future data center orders, which are driving a substantial rise in demand for industry-standard components over the year ahead,' he continues.

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 data center infrastructure. Super Micro also sharply raised its forecast for adjusted gross margin for the quarter ended June 30, now expected at 15% to 17%, versus 8.2% to 8.4% previously. The group attributed the improvement to a more favorable product and customer mix, reflecting the success of its most advanced artificial intelligence-focused solutions.

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 highest-performing data center infrastructure. Super Micro also significantly raised its forecast for adjusted gross margin for the quarter ended June 30, now expected to be between 15% and 17%, up from 8.2% to 8.4% previously. The group attributed the improvement to a more favorable product and customer mix, driven by the success of its most advanced artificial intelligence-focused solutions.