Catenaa, Wednesday, July 22, 2026- Super Micro stock jumped 24% on Wednesday after the AI server maker said it expects gross margins to nearly double in the coming quarters.
“Backlog rose to record levels at the end of fiscal 2026 with total new orders in excess of $60 billion received during the fourth quarter of fiscal 2026,” said the company in its business update.
Super Micro said it expects its gross margin to be in the range of 15% to 17%, significantly higher than the company’s prior guidance of 8.2% to 8.4%, “primarily due to a favorable customer and product mix.”
The margin surprise is structurally important after governance scrutiny and dilution tied to Super Micro Computer’s June $7 billion financing raised to fund roughly $39 billion in AI-server orders.
The $60 billion order figure anchors the AI-infrastructure buildout directly to Super Micro’s backlog.
Barclays raised its Super Micro Computer stock price target to $38 from $34, maintaining Equal Weight. Meanwhile, Rosenblatt lifted its SMCI target to $45 from $40 with a Buy rating, citing Super Micro’s “industry-leading” time-to-market advantage.
The backlog matters only if Super Micro Computer can convert it into recognized revenue at the newly guided 15% to 17% gross margin, rather than the thin 8%-plus range that had worried the Street.
The guidance hints that the customer and product mix may finally be working in the company’s favor. Even so, patient investors may choose to wait for the August 11 results to confirm or deny that shift before assuming it’s durable.
Super Micro designs and builds servers and data center systems that incorporate semiconductors from chipmakers like Nvidia, Intel, and AMD.
Last month, Super Micro CEO Charles Liang congratulated Elon Musk for SpaceX’s IPO, revealing that the company was co-building “another new Gigawatt AI datacenter for @SpaceX and @XAI within a year!”
Despite the AI boom, the stock has had a volatile ride in recent months.
Year to date, shares are down nearly 13% after tumbling in June following an announcement of an equity raise to purchase components to fulfil $39 billion in AI server orders.
