Shares of Super Micro Computer (SMCI -5.33%) leaped on Wednesday after the server maker announced preliminary financial results.
Image source: Getty Images.
Supplying AI data centers with the equipment they need
Supermicro expects to report revenue of $18.5 billion to $19.5 billion in its fiscal 2027 first quarter, which ended on Sept. 30. That's significantly above management's prior forecast of $14.5 billion to $15.5 billion and Wall Street's projections of roughly $15 billion.
The data center infrastructure provider said the stronger-than-expected results were driven by rising demand for its artificial intelligence (AI) platforms.
SMCI Super Micro Computer
NASDAQ · As of 3:52 PM ET 10/22/26
Additionally, Supermicro expects to report a gross margin of 12% to 12.5%, well above its previous guidance of 10.4% to 10.8%, due to a more favorable customer and product mix.
This improved profitability suggests that robust AI-related demand is enabling computing infrastructure suppliers to charge higher prices for their products.
AI stocks are rallying
The news comes as a welcome relief for investors, and fellow server makers Dell and Hewlett Packard Enterprise rose in kind.
Many AI stocks have pulled back in recent weeks, due to mounting fears of surging debt levels among data center builders and other technology companies.
Supermicro's results suggest the AI build-out boom may have more room to run. Investors can expect to hear more about management's view of this increasingly important global trend during Supermicro's upcoming earnings call on Nov. 3 at 5:00 p.m. ET.
