US Stock Market Move | Earnings Greatly Exceed Expectations, Super Micro Computer, Inc. (SMCI.US) Surges Over 13%

On Wednesday, Super Micro Computer, Inc. (SMCI.US) surged over 13%, while Dell Technologies, Inc. Class C (DELL.US) rose over 5%. On the news front, Super Micro Computer, Inc. disclosed preliminary quarterly results, with both revenue and gross margin significantly exceeding prior expectations, confirming that demand for AI infrastructure procurement remains high-growth. Super Micro Computer, Inc. expects revenue for the first quarter of fiscal year 2027, ending September 30, to range from $18.5 billion to $19.5 billion, markedly above its previous guidance of $14.5 billion to $15.5 billion, and versus a FactSet consensus estimate of $14.9 billion. Based on the midpoint of $19 billion, revenue would increase approximately 279% year-over-year, nearly quadruple the year-ago level, and about 27% above the midpoint of the original guidance. The company also raised its gross margin expectation to 12%-12.5%, compared with prior guidance of only 10.4%-10.8%.