Server maker Super Micro Computer, Inc. (SMCI.US) said on Tuesday (21st) that due to a surge in new orders, it now expects margins for 4QFY26 to beat previous forecasts. The stock closed up 7% overnight and further leaped 20.6% in after-hours trading to USD30.75.

The company said gross margin and adjusted gross margin are expected to be 15-17%, above the 8.2-8.4% range provided by management in May.

SMCI said in a preliminary business update that the revision was mainly driven by a favorable customer and product mix.

Demand for servers equipped with AI model GPUs from NVIDIA Corporation (NVDA.US) spiked, benefiting SMCI as well as rivals Dell Technologies Inc. (DELL.US) and Hewlett Packard Enterprise Company (HPE.US). Dell soared 5% in extended trading after Tuesday's close, while HPE gained more than 4%.
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AASTOCKS Financial News
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