Supermicro Shares Surge After Company Nearly Doubles Margin Outlook

Shares of Supermicro jumped 18% in after hours trading wednesday after the AI server maker sharply raised its gross margin outlook while reporting a record order backlog heading into the new fiscal year.

The company said new orders exceeded $60 billion during the fourth quarter of fiscal 2026, pushing its total backlog to record levels by year end. That surge in demand accompanied an updated forecast, with Supermicro now expecting gross margins between 15% and 17%, a sharp jump from its previous guidance.

What Supermicro Builds

Supermicro designs and manufactures servers and data center systems that rely on chips from major semiconductor makers including Nvidia, Intel and AMD. Last month, CEO Charles Liang said the company was working with Elon Musk’s ventures to build another gigawatt-scale AI data center for SpaceX and xAI within the coming year.

A Volatile Year for the Stock

Despite the latest rally, Supermicro shares remain down 12% for the year, following a steep drop in June after the company announced a $7 billion equity raise to fund components needed to fulfill $39 billion worth of AI server orders. The renewed margin guidance and record backlog appear to have restored some investor confidence in the stock’s near-term trajectory.