Super Micro Computer (SMCI) Stock Jumps 13% as Revenue Outlook Tops Estimates by Billions

TLDR

• Super Micro (SMCI) stock rose about 13% in premarket and late trading after it closed at $32.47 on Tuesday.
• The company raised its fiscal Q1 revenue outlook to $18.5 billion to $19.5 billion from $14.5 billion to $15.5 billion.
• Gross margin guidance moved up to 12.0% to 12.5%, from 10.4% to 10.8%.
• Dell and Hewlett Packard Enterprise gained 5.3% and 4.5% after hours, while chip stocks rose about 2%.
• Full results are due November 3, and new CFO Mark Long started last week.

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Super Micro Computer (SMCI) stock jumped about 13% in premarket trading Wednesday. The move followed a sharp increase to the company’s revenue outlook. The stock had closed Tuesday at $32.47.

Super Micro Computer, Inc., SMCI

On Tuesday, the server maker said it now expects revenue of $18.5 billion to $19.5 billion for the quarter ended September 30. Its earlier forecast was $14.5 billion to $15.5 billion.

The midpoint of the new range sits well above the analyst consensus of $14.99 billion. It is also roughly 27% higher than the company’s own previous midpoint.

Supermicro $SMCI RAISES its fiscal Q1 revenue outlook to $18.5B-$19.5B (prior: $14.5B-$15.5B), citing stronger AI demand.

Gross margin now seen at 12%-12.5% (prior: 10.4%-10.8%).

Figures are preliminary, with final earnings due Nov. 3. pic.twitter.com/oCt0ttDGWS

— Wall St Engine (@wallstengine) October 20, 2026

If the forecast holds, revenue would nearly quadruple from a year ago. That is a big jump, even for a company riding the AI boom.

Margins Also Move Higher

Super Micro also lifted its gross margin outlook. It now expects 12.0% to 12.5%, up from 10.4% to 10.8%.

The company said a more favorable customer and product mix drove most of the improvement. Better margins on top of higher sales is a combination investors rarely complain about.

Analysts at Mizuho pointed to “rapidly increasing server demand and agentic AI tailwinds.” That note helped frame the update as demand-driven.

The news came as a relief after the company warned that fiscal fourth-quarter revenue would land near the low end of its forecast. Wednesday’s update flips that story.

Peers and Chip Stocks React

The good news spread to other server makers. Dell Technologies rose 5.3% in after-hours trading, and Hewlett Packard Enterprise gained 4.5%.

Chipmakers got a smaller lift. Nvidia, Advanced Micro Devices, Micron Technology and Marvell Technology each gained roughly 2% after hours.

That bounce follows a rough stretch. The Philadelphia Semiconductor Index lost eight sessions in a row before rising 1.6% on Monday. It slipped 0.3% on Tuesday.

Worries about heavy debt-funded spending and higher borrowing costs have weighed on AI data-center names. CoreWeave and Oracle were among the weaker performers last week.

Barron’s noted that investors are not doubting that customers are buying hardware. The question is whether those customers can earn enough returns to justify the spending.

It also pointed out that Super Micro could be winning business from rivals or selling pricier systems. Its results may not signal a matching rise in demand across the whole chip industry.

Super Micro named former Western Digital executive Mark Long as chief financial officer last week. The company will release full fiscal first-quarter results on November 3.