Supermicro shares surged 15% in after-hours trading following a preliminary revenue report for the last quarter that beat expectations, fueling a rally across a range of AI and server-related stocks
Super Micro Computer, a major AI server manufacturer, reported strong preliminary financial results, sending its stock price soaring by 15% in after-hours trading on Tuesday (the 20th). This news eased market concerns regarding the outlook for technology sector spending and triggered a rally in the shares of other server manufacturers and AI-related companies.
Super Micro announced on Tuesday that it expects revenue for the quarter ending September 30 to be between $18.5 billion and $19.5 billion—significantly higher than the $15 billion average estimate from analysts, according to data compiled by Bloomberg.
The statement also indicated that the gross margin for the quarter is expected to fall between 12% and 12.5%.
Following the announcement, Super Micro’s stock surged more than 15% to $37.51 per share in after-hours trading. As of Tuesday’s market close, the stock was up 11% for the year to date.
Super Micro continues to benefit from the surging demand for equipment required to train and execute AI tasks. The company’s servers are powered by NVIDIA chips, which have become the essential, preferred component for the vast majority of AI data centers.
Shares of competitors Dell Technologies and Hewlett Packard Enterprise (HPE)—both of which also provide computing infrastructure—rose by more than 5%. Meanwhile, shares of “new-breed” cloud providers CoreWeave and Nebius climbed by over 4% and 5%, respectively. The VanEck Semiconductor ETF rose 2.2%, and the Invesco QQQ Trust, which tracks the Nasdaq 100 Index, saw an after-hours gain of up to 0.9%.
Prior to this, AI-related stocks had been under pressure throughout the month; the PHLX Semiconductor Sector Index (SOX) had fallen 11% in October, driven by market concerns that the breakneck pace of corporate spending on computing infrastructure might be unsustainable.
Super Micro stated that it will provide further details regarding its financial results during a conference call scheduled for November 3. The company did not explain why it chose to release these preliminary figures ahead of its originally scheduled earnings announcement date.