SMCI Stock Jumped 18 Percent After Hours On Record $60 Billion Backlog And Doubling Margins

Supermicro stock surged as much as 25 percent in after-hours trading Tuesday before settling around 18 percent higher after the AI server maker released a preliminary fourth-quarter update that blew past the one number investors were most focused on, gross margins. The stock had already closed the regular session up 7 percent.

The company told investors to expect Q4 gross margins of 15 to 17 percent, nearly double its prior guidance of 8.2 to 8.4 percent, which management attributed to a favorable customer and product mix.

Revenue is expected near the lower end of the $11 to $12.5 billion guided range, soft on the top line but irrelevant in context of the margin news.

The headline figure is the backlog. Supermicro received more than $60 billion in new orders during the fourth quarter of fiscal 2026 alone, pushing total backlog to a record level.

The company is co-building a gigawatt AI datacenter with SpaceX and xAI. Its servers are built around chips from Nvidia, Intel and AMD. The full Q4 earnings call is August 11.

Year to date the stock remains down 12 percent after a rough June equity raise. Tuesday night erased a lot of that pain in about 90 minutes.