Super Micro Computer (NASDAQ: SMCI) shares jumped roughly 9% to $35.40 in Wednesday afternoon trading after the AI server maker disclosed preliminary quarterly revenue and gross margin estimates that exceeded its previous forecasts, citing stronger demand for artificial intelligence infrastructure.
The company estimated revenue of $18.5 billion to $19.5 billion for its fiscal first quarter of 2027, which ended September 30, compared with its earlier guidance of $14.5 billion to $15.5 billion.
At the $19 billion midpoint, the new estimate is $4 billion, or nearly 27%, above the previous forecast. It also exceeds the $15.23 billion average analyst estimate compiled by LSEG, according to Reuters.
The preliminary revenue midpoint would represent an increase of approximately 279% from the $5.02 billion reported in the same quarter a year earlier, bringing quarterly sales to nearly four times their year-earlier level.
Supermicro Raises Gross Margin Estimate Alongside Revenue
Supermicro estimated gross margins of 12% to 12.5% for the September quarter, up from its previous guidance of 10.4% to 10.8%. The company attributed the higher margin estimate to changes in its customer and product mix.
Despite exceeding its earlier guidance, the projected gross margin remains below the 17.5% reported in the preceding fiscal fourth quarter, which ended June 30.
The estimates are unaudited and remain subject to revision as Supermicro completes its quarterly financial statements.
Super Micro Shares Rebound as Analysts Assess Preliminary Results
Wednesday’s advance extended a three-session recovery after Supermicro shares declined for seven consecutive trading days through October 16.
Despite the rebound, the stock remained about 21% below its October 7 close of $44.94. By early afternoon Wednesday, more than 59 million shares had changed hands, exceeding the stock’s recent 50-day average daily trading volume of about 43 million shares.
Wall Street analysts also updated their assessments following the preliminary business results.
Rosenblatt raised its price target on Supermicro to $57 from $51 on Wednesday and maintained its Buy rating, citing stronger-than-expected revenue and gross margin estimates. Needham separately reiterated its Buy rating and $46 price target.
Supermicro is scheduled to release its full fiscal first-quarter financial results on November 3, with an earnings conference call at 5 p.m. ET.
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