Super Micro Computer Inc. (NASDAQ:SMCI) surged by as much as 26.6 percent in intra-day trading on Wednesday to $32.28 apiece as investors placed bets on the company’s growth prospects after receiving more than $60 billion in order backlogs in the fourth quarter of fiscal year 2026.
The stock closed 19.84 percent higher at $30.56 apiece.
Said to be a record level, the order volume prompted the company to sharply raise its gross margins guidance to a range of 15 to 17 percent versus the 8.2 percent to 8.4 percent guided in May.
It said that the revision was “primarily due to a favorable customer and product mix.”
The order volume signaled the surging demand for AI servers containing Nvidia graphics processing units, which also helped propel share prices of Super Micro Computer Inc.’s (NASDAQ:SMCI) rivals, namely Dell and Hewlett Packard Enterprises.
Photo by Tima Miroshnichenko on Pexels
On Track to Hit Revenue Guidance
Super Micro Computer Inc. (NASDAQ:SMCI) remains on track to hit its revenue outlook of $11 billion and $12.5 billion for the fourth quarter, although it noted that it will likely hit the low end of the guidance.
Still, the lower end would imply at least 89.6 percent in year-on-year revenue growth, versus the $5.8 billion posted in the same period last year.
Analysts polled by LSEG, on the other hand, were expecting the company to report $11.67 billion in revenues.
Super Micro Computer Inc. (NASDAQ:SMCI) is scheduled to release the official results after market close on August 11. It will host a conference call to discuss the results.
SpaceX Partnership
The order volume followed the company’s partnership with SpaceX.
In a social media post last month, Super Micro Computer Inc. (NASDAQ:SMCI) CEO Charles Liang said that the company was proud “to co-build another new Gigawatt AI datacenter for @SpaceX and @xAI within a year!”
However, SpaceX has yet to confirm whether it was the customer behind Super Micro’s record backlog.
More Hedge Funds Buy In
More institutional investors appeared to be bullish on Super Micro Computer Inc. (NASDAQ:SMCI).
As of the first quarter of the year, data by Insider Monkey showed that 49 hedge funds held positions in the company, up from 39 in the previous quarter.
The value of their positions also climbed by 33 percent to $543.7 million from $409 million quarter-on-quarter, signaling broader institutional conviction as more hedge funds established and expanded positions.
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