Preliminary results drive strong premarket gains
Shares of Super Micro Computer (NASDAQ:SMCI) climbed around 15% in premarket trading on Wednesday after the company released preliminary fourth-quarter figures highlighting significantly stronger profitability and record customer demand.
The stock initially rallied about 20% in after-hours trading following the announcement before giving back part of those gains as several analysts urged investors to remain cautious.
Although Supermicro indicated that fourth-quarter revenue is likely to come in near the lower end of its previous guidance, the AI server manufacturer surprised the market with a dramatic improvement in profitability. For the quarter ended June 30, 2026, the company expects both GAAP and non-GAAP gross margins to range between 15% and 17%.
That compares with its earlier forecast of 8.2% to 8.4%, with management attributing the improvement to a more favourable mix of products and customers.
Analysts remain cautious despite stronger profitability
“While the gross margin results were positive, we still view the governance and regulatory risks as unresolved. Further, gross margins have historically been volatile and subject to large swings in customer mix. We’re not ready to call the gross margin improvement a trend,” Wolfe Research analyst George Notter said in a note.
While projected quarterly revenue remains close to the lower end of the company’s $11.0 billion to $12.5 billion guidance range, investors focused instead on the sharp margin expansion and the company’s robust future order pipeline.
Record backlog highlights continued AI demand
Supermicro reported that its order backlog reached a record high at the end of fiscal 2026 after securing approximately $60 billion in new orders during the fourth quarter alone.
The company said the sizeable backlog provides strong revenue visibility, with deliveries expected to take place over the coming quarters as customer demand for AI infrastructure remains elevated.
“We envision incremental risk from a potential shift in allocation from NVIDIA, although this is impossible to quantify,” Raymond James analyst Simon Leopold said. While Supermicro reiterated that their allocation has not been changed, Leopold notes that this “will likely remain a point of investor concern.”
Full earnings due in August
Supermicro is scheduled to publish its complete fourth-quarter and fiscal 2026 financial results during its earnings conference call on August 11 at 5:00 p.m. EDT, when investors are expected to look for further details on margins, backlog conversion and demand trends.
Super Micro Computer stock price
