Super Micro Computer (NASDAQ: SMCI) stock soared after the company unexpectedly raised its revenue and gross margin guidance for its fiscal first quarter of 2027.
SMCI shares closed 17.23% higher at $37.55, with extended trading adding another 11.3% on top of that gain.
The company filed an 8-K with the SEC disclosing a preliminary business update that caught Wall Street off guard with its magnitude.
Super Micro now expects revenue of $18.5 billion to $19.5 billion, up sharply from prior guidance of $14.5 billion to $15.5 billion.
The midpoint of that new revenue range implies growth of nearly 280% compared to the same period a year earlier.
Gross margin guidance also climbed, rising to between 12.0% and 12.5% from a prior estimate of 10.4% to 10.8%, with the company crediting a favorable mix of customers and products for the improvement.
The figures remain preliminary and unaudited, with Super Micro scheduling its full earnings call for November 3, 2026.
The update rippled immediately across the AI server supply chain, lifting Dell Technologies (NYSE: DELL) 6% and Hewlett Packard Enterprise (NYSE: HPE) 5% in extended trading.
Reuters reported gains of between 3.5% and 4.9% for the Dell and HPE pair, as investors treated the Super Micro update as a positive read-through for the broader server group.
Emerging cloud computing firms CoreWeave and Nebius Group both climbed more than 4%, while the VanEck Semiconductor ETF advanced 2.2% on the session.
The Invesco QQQ Trust, which tracks the Nasdaq-100 index, posted a gain of up to 0.9% as the AI hardware trade received a fresh demand signal from the update.
Companies rarely pre-announce results unless the gap between actual performance and expectations is substantial, giving the preliminary figures added credibility with investors.
The margin improvement may carry particular weight, as it addresses a persistent concern that Super Micro had been sacrificing profitability in order to chase volume growth.
The jump in SMCI shares also partly reversed a recent slide, with the stock having fallen roughly 8.42% over the prior 20 trading days before Tuesday’s move.
During that stretch, shares traded in a range between $31.27 and $45.15, reflecting the volatility that has surrounded the stock in recent months.
Volume on the day ran at 1.83 times the 20-day average, underscoring the degree to which the surprise update shifted sentiment sharply in Super Micro’s favor.
Investors will still need to wait for the full November 3 report to get a complete picture of segment performance, cash flow, and the composition of any backlog figures.
