Super Micro's Margins Soar, Stock Surges 17%

Super Micro Computer issued a preliminary business update for its fiscal fourth quarter, announcing anticipated gross margins between 15% and 17%, a significant increase from its prior 8.2% to 8.4% guidance. This margin improvement, attributed to a favorable customer and product mix, caused SMCI stock to surge 17% in after-hours trading on Tuesday, July 22, 2026.

The San Jose-based AI server maker also disclosed that new orders during the quarter exceeded $60 billion, resulting in a record backlog as fiscal year 2026 concluded. While these orders are expected to be fulfilled in future quarters, the company cautioned that some may be subject to cancellation or delays. Super Micro anticipates its fourth-quarter revenue will be at the lower end of its $11 billion to $12.5 billion target range.

This positive financial update comes after a challenging period for Super Micro, including a fiscal third-quarter revenue shortfall and ongoing legal controversies. The company is cooperating with authorities investigating alleged smuggling of Nvidia AI chips to China. Super Micro confirmed ties between three individuals charged in a federal indictment and the firm, including former board member Yih-Shyan 'Wally' Liaw. An independent board review is underway concerning transactions linked to these alleged export-control issues.