SerpApi.Org
Shares of Super Micro surged more than 20% in after-hours trading Tuesday after the artificial intelligence server firm said that its gross margins for the quarter ending in June will be in the range of 15% to 17%—double the 8.2% to 8.4% from its prior guidance.
The company credited “favorable customer and product mix” for the raised estimates. Shares were up as much as 21% shortly after the announcement, before paring some of those gains. They were up around 17.6% shortly after 5 p.m. Eastern time at $30.
While revenue is on track to be near the lower end of prior guidance of $11 billion to $12.5 billion, Super Micro’s backlog rose to record levels in the fourth quarter. Total new orders are in excess of $60 billion received during the fourth quarter and will be delivered in future quarters.
The tech firm’s shares have fallen nearly 50% over the past year because of a number of problems.
In March, the Department of Justice charged the company’s co-founder Yih-Shyan “Wally” Liaw over an alleged plan to smuggle U.S.-assembled servers to China. That caused the stock to fall by a third in March. Liaw, who resigned from the company in 2018, has pleaded not guilty.
Then in June, two of its employees were detained in Taiwan as part of an investigation into alleged smuggling of Nvidia chips to China. Super Micro has said it isn’t a target of the investigation and is working with authorities.
In early 2025, the company nearly got delisted from Nasdaq after failing to file reports with the Securities and Exchange Commission on time.
Shares rebounded from both scandals as Super Micro reported profits from the AI boom, but sold off sharply in June after the company announced that it was raising $7 billion in equity financing over concerns of share dilution.
Super Micro next reports earnings on Aug. 11 after the market closes.
Write to Anita Hamilton at [email protected]