Supermicro (SMCI) stocks jumped 15.88% to $29.55 in premarket trading on Wednesday after the AI server manufacturer issued a business update announcing record orders and a revised gross margin forecast. The surge followed Tuesday's regular session where SMCI stocks gained 7.01% to close at $25.50. The company attributed the improved outlook to a more favorable mix of customers and products, with its order backlog reaching record levels at the end of fiscal 2026 after receiving more than $60 billion in new orders during the fourth quarter alone. The rally reflects growing investor confidence in Supermicro's ability to capitalize on strong demand for artificial intelligence infrastructure, though concerns about profitability and shareholder dilution from a June equity raise have previously weighed on the stock.
Supermicro Raises Gross Margin Forecast to 15-17%
Supermicro revised its gross margin outlook to a range between 15% and 17%, nearly double its previous guidance of between 8.2% and 8.4%. The company attributed the improved forecast primarily to a more favorable mix of customers and products. The margin increase addresses investor concerns about profitability that have weighed on SMCI stocks despite growing demand for AI servers. Supermicro builds servers and data center systems using processors and accelerators supplied by companies such as Nvidia, AMD and Intel, with its systems becoming important as technology companies invest heavily in computing infrastructure required to train and operate advanced AI models.
Record $60 Billion Q4 Orders Drive Backlog Growth
Supermicro's order backlog reached a record level at the end of fiscal 2026, with the company receiving more than $60 billion in new orders during the fourth quarter alone. The AI server manufacturer stated it expects to fulfil a big portion of this backlog over the coming quarters as demand for artificial intelligence infrastructure remains strong. In June, Supermicro CEO Charles Liang said the business was working with Elon Musk's companies to build another gigawatt-scale AI data center for SpaceX and xAI within a year. The backlog provides visibility into future revenue, though the company will need to demonstrate it can deliver orders efficiently and convert demand into stronger profits.
SMCI Stocks Remain Down 13% Year-to-Date Despite Rally
Despite Wednesday's premarket rally, SMCI stocks are still down approximately 13% since the beginning of the year. The stock fell sharply in June after Supermicro announced an equity raise intended to fund component purchases needed to fulfil approximately $39 billion in AI server orders. The capital raise led to concerns about shareholder dilution and the amount of funding required to support the company's expansion. Wednesday's premarket move of $4.05 from the previous closing price of $25.50 suggests investors are becoming more optimistic about Supermicro's ability to translate its record backlog into improved margins and stronger financial performance.
FAQ
What caused SMCI stocks to surge on Wednesday?
SMCI stocks jumped 15.88% to $29.55 in premarket trading on Wednesday after Supermicro announced a business update that included record orders exceeding $60 billion in the fourth quarter and a revised gross margin forecast of 15-17%, nearly double the previous guidance of 8.2-8.4%.
How much did Supermicro receive in new orders during the fourth quarter?
Supermicro received more than $60 billion in new orders during the fourth quarter, with its order backlog reaching record levels at the end of fiscal 2026. The company stated it expects to fulfil a big portion of this backlog over the coming quarters as demand for artificial intelligence infrastructure remains strong.
What is Supermicro's current stock performance year-to-date?
Despite the Wednesday rally, SMCI stocks are still down approximately 13% since the beginning of the year. The stock experienced volatility after a June equity raise announcement intended to fund approximately $39 billion in AI server orders, which raised concerns about shareholder dilution.
