What happened: Supermicro (SMCI) stock jumped 12% in early trading Wednesday, while peers Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE) gained 5% and 4%, respectively.
What’s behind this move: The AI server maker raised its first-quarter revenue forecast by $4 billion, signaling stronger-than-expected demand for artificial intelligence infrastructure.
Supermicro now expects revenue between $18.5 billion and $19.5 billion for the quarter ended September 30, up from its previous forecast of $14.5 billion to $15.5 billion.
The company also raised its gross margin forecast to between 12 and 12.5%, compared to a previous forecast of 10.4% to 10.8%, citing a more favorable customer and product mix.
Supermicro will present its full financial results for the first quarter of 2027 on November 3.
36.59 +4.12 (+12.69%)
At 9:41:39 a.m. EDT. Open market.
What else do you need to know: Supermicro designs and builds servers and data center systems incorporating semiconductors from chipmakers such as Nvidia (NVDA), Intel (INTC) and AMD (AMD).
Supermicro’s update comes as investors evaluate the AI business, signaling that demand for hardware remains robust, even as questions persist about returns on massive investments in data centers.
The rally also puts AI-related stocks back in focus after SpaceX (SPCX) AI-powered results.
Year to date, Supermicro stock is up about 10%.
Ines Ferre is a senior economics reporter for Yahoo Finance.
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