What’s happened: Shares of Supermicro (SMCI) jumped 15% in premarket trading Wednesday.
What’s behind the move: After the market closed on Tuesday, the AI server maker said it expects gross profit to nearly double as it deals with a record number of orders in the coming quarters.
“The backlog grew to a record level at the end of fiscal 2026, with total new orders exceeding $60 billion received in the fourth quarter of fiscal 2026,” the company said in its business update.
Supermicro said it expects its gross margin to be in the range of 15% to 17%, significantly higher than the company’s previous guidance of 8.2% to 8.4%, “primarily driven by a favorable customer and product mix.”
What else you need to know: Supermicro designs and manufactures servers and data center systems that use semiconductors from chipmakers such as Nvidia (NVDA), Intel (INTEL) and AMD (AMD).
Last month, Supermicro CEO Charles Liang congratulated Elon Musk on SpaceX’s IPO, saying the company was jointly building “another new gigawatt AI data center for @SpaceX and @XAI within a year!”
Despite the artificial intelligence boom, stocks have experienced volatility in recent months.
The stock is down nearly 13% year to date after falling in June after announcing it was raising capital to buy components to fulfill $39 billion worth of artificial intelligence server orders.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her to X in @ines_ferre.
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