Super Micro shares rise after stronger margin outlook and $60bn in orders
The server maker said June-quarter gross margins should exceed prior guidance, while new AI-server orders pushed its backlog to a record.
By Amanda Ross · Deals Correspondent
· 3 min read
Super Micro Computer shares rose sharply on Tuesday after the server maker said it had received more than $60 billion of new orders in its fiscal fourth quarter and now expects June-quarter margins well above its earlier forecast. The update lifted other AI-server suppliers, with Dell and Hewlett Packard Enterprise also gaining in extended trading.
Super Micro said in a preliminary business update that gross margin and adjusted gross margin for the quarter ended June 30 should be between 15% and 17%. In May, management had guided investors to a much lower range of 8.2% to 8.4%.
The company attributed the margin increase to what it called a “favorable customer and product mix.” Gross margin measures the share of revenue left after the direct cost of producing and delivering goods. Adjusted gross margin typically excludes certain items that management does not consider part of the underlying operating performance.
Shares of Super Micro were up 13% after the announcement, according to CNBC. Dell rose 5% in after-hours trading, while Hewlett Packard Enterprise advanced 4%.
AI server demand drives backlog
Super Micro has been one of the companies supplying servers built around Nvidia graphics processing units, the chips widely used to train and run artificial intelligence models. Demand for those systems has also benefited rivals including Dell and Hewlett Packard Enterprise.
The company said its backlog reached a record level at the end of fiscal 2026, which closed on June 30. Super Micro said the more than $60 billion in new orders received during the fourth quarter would be fulfilled in later quarters.
Order backlog represents contracted or committed demand that has not yet been recognized as revenue. For hardware suppliers, the conversion of backlog into sales depends on factors such as component availability, manufacturing capacity, customer delivery schedules and acceptance of finished systems.
Super Micro’s revenue outlook was more restrained than its margin revision. The company said it now expects June-quarter sales to land at the low end of its previous guidance range of $11.0 billion to $12.5 billion. Analysts surveyed by LSEG had expected revenue of $11.67 billion.
SpaceX work highlighted by CEO
During the quarter, Chief Executive Charles Liang pointed to new work involving SpaceX. In a June post on X, Liang said Super Micro was helping build another gigawatt-scale AI data center for SpaceX and xAI within a year.
SpaceX and xAI are associated with Elon Musk, and the announcement added to investor attention around Super Micro’s role in large AI infrastructure projects. The company did not provide detailed financial terms for the SpaceX-related work in the Tuesday update.
Super Micro said it expects to hold its earnings call on Aug. 11. Investors will be watching for details on how quickly the order book can turn into revenue, whether higher margins are sustainable and how AI-server demand is affecting production and working capital needs.
This story draws on original reporting from CNBC.
